TDS u/s 194IA :

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  1. Narendra Shah

    Narendra Shah New Member

    A co-op housing society is engaged in constructing and selling commercial and residential properties and for that purpose, entered into a Development Agreement with a Developer Firm entrusting the work to construct,build,book and sell the units and hand over the entire constructed property with members to the society after constructed and fully sold. The developer firm as agreed in the agreement receives development fees for such services.
    Now, the query is that after the insertion of Provisions of Sec.194 IA, on the basis of selling rights available with the developer firm, it joined as a seller party besides the co-op. society as a seller party in the sale deed. The Purchaser of the property deducted TDS u/s 194IA out of the sale consideration paid to the developer firm and also issued TDS Certificate in the name of developer firm
    The question for opinion arises in regard as to how developer firm can claim credit for TDS amount deducted in absence of ownership right on property does not belong to it but to the Society.In Form no.26AS, it shows the name of developer firm. Therefore, to claim the credit of TDS amount, the developer firm has to show not only TDS amount but also the gross sale consideration received from the buyer which is not correct since, ownership of property belong to society in its books. Society is unable to claim it since TDS is not deducted in its name but in the name of developer firm.
    In the circumstances, i wish to have your guidance/ opinion to solve the issue as to in whose case, the income/TDS can be claimed which pertains to A.Y.2014-15.
    Best regards,
    Narendra Shah
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