Taxation before, during & after sale of property
Sachin Dive
(Querist) 21 January 2014
This query is : Resolved
Sir,
I had struck a deal with an NRI for a flat at Kamote in Navimumbai. which we commonly know as investor flat. I got the agreement of sale registered on 16.01.2014. All the titles & property documets are clear. I have also got a loan sanction in principle for the property in concern.
My query is related to taxes & membership charges that the investor (NRI ) is liable to pay as a 1st party & the taxes & membership charges that I am liable to pay as a 2nd party.
The builder is taking care of the society bcoz so far all flats have not been sold. Therfore the excercise of society formation has not been carried out sofar. Will i face any problem when it comes to formation of society.
please guide me.
ajay sethi
(Expert) 21 January 2014
no you wont face problems . builder will transfer flat in your name .hence builder recovers transfer charges. at time of formation of society your name will be entered into society records as member .
Sachin Dive
(Querist) 21 January 2014
Information dat i have from my sources is that. During formation & registration of society some fees has to be paid to the local municipality. In this case it is CIDCO. Now because the 1st party has not paid this fees. Will i be liable to pay to cidco his fees on his behalf n thn again bcoz i own the property now. Therfore will i have to pay the fees again in my name too?
If the 1stparty donot pay the TDS arising from this sale. Will i face any probkem in future?
Sir please advice?
ajay sethi
(Expert) 21 January 2014
if first party has not paid fees recover the same at time of signing sale deed . as far as TDS is concerned you should deduct the amount before making payment . . your CA can guide you .
Rajendra K Goyal
(Expert) 21 January 2014
The fee payable is to be recovered from the Ist party. The TDS has to be deducted as per IT Act and Rules otherwise you will be in trouble.
