News Details- (Get Professional Updates on Whatsapp, Msg on
8285393786) More
News
Delhi HC upholds TDS on external development charges
PrintThe Delhi High Court on Tuesday upheld Tax Deducted at Source (TDS) on External Development Charges (EDC) in a real estate project. This means that home buyers will have to bear the burden of TDS.
A division Bench of Delhi High Court Comprising Justices Yashwant Varma and Purushaindra Kumar Kaurav upheld that Section 194C is applicable to EDC paid by real estate developers to Haryana Urban Development Authority. “We negative the challenge raised in these writ petitions in so far as the invocation of Section 194C of the Act is concerned and hold that EDC payments would be covered thereunder,” the bench said . Further, it also turned down the challenge to the Clarification issued by the Central Board of Direct Taxes dated December 23, 2017.
The said office memorandum clarified that EDC if paid to the government of Haryana would be exempt from TDS provisions. However, in case the developer has made the payment like EDC not to the government but to HUDA [Haryana Urban Development Authority) which is a development authority of the State government of Haryana and is a taxable entity under the income-tax Act, 1961, it would attract TDS.
Section 194C of the Income Tax Act mandates that deductions can be made under TDS if the total payment credited to a contractor or sub-contractor in a financial year exceeds ?30,000 in a single payment or amounts to ?1 lakh in the aggregate. The TDS rate varies between 1-2 per cent, if the contractor has PAN. In case of no PAN, the rate would be 20 per cent.
A division Bench of Delhi High Court Comprising Justices Yashwant Varma and Purushaindra Kumar Kaurav upheld that Section 194C is applicable to EDC paid by real estate developers to Haryana Urban Development Authority. “We negative the challenge raised in these writ petitions in so far as the invocation of Section 194C of the Act is concerned and hold that EDC payments would be covered thereunder,” the bench said . Further, it also turned down the challenge to the Clarification issued by the Central Board of Direct Taxes dated December 23, 2017.
The said office memorandum clarified that EDC if paid to the government of Haryana would be exempt from TDS provisions. However, in case the developer has made the payment like EDC not to the government but to HUDA [Haryana Urban Development Authority) which is a development authority of the State government of Haryana and is a taxable entity under the income-tax Act, 1961, it would attract TDS.
Section 194C of the Income Tax Act mandates that deductions can be made under TDS if the total payment credited to a contractor or sub-contractor in a financial year exceeds ?30,000 in a single payment or amounts to ?1 lakh in the aggregate. The TDS rate varies between 1-2 per cent, if the contractor has PAN. In case of no PAN, the rate would be 20 per cent.
Category : TDS | Comments : 0 | Hits : 1023
Get Free Daily Updates Via e-Mail on Income Tax, Service tax, Excise and Corporate law
Search News
News By Categories More Categories
- Income Tax Dept serves notices to salaried individuals for documentary proof to claim exemptions
- Bank Branch Audit 2021 - Update on allotment of Branches
- Bank Branch Audit 2020 Updates
- Bank Branch Audit 2021 Updates
- Bank Branch Audit 2020 - Update on Allotment of Branches
- Police Atrocities towards CA in Faridabad - Its Time to be Unite
- Bank Branch Statutory Audit Updates 2019
- Bank Branch Statutory Audit Updates
- Bank Branch Audit 2022 Updates
- Bank Branch Statutory Audit Updates
- NFRA Imposes Monetary penalty of Rs 1 Crore on M/s Dhiraj & Dheeraj
- ICAI notifies earlier announced CA exam dates despite pending legal challenge before SC
- NFRA debars Auditors, imposes Rs 50 lakh penalties for lapses in Brightcom, CMIL cases
- GST Important Update - Enhancement in the GST Portal
- NFRA Slaps Rs 5 lakh Penalty on Audit Firm for lapses in Vikas WSP Audit Case
- CBDT extends due date for filing Form 10A/10AB upto 30th June, 2024
- RBI comes out with FEMA regulations for direct listing on international exchange
- RBI directs payment firms to track high-value, fishy transactions during elections
- NCLT orders insolvency proceedings against Subhash Chandra
- Income Tax dept starts drive to dispose of appeals, 0.54 million at last count
- Payment of MCA fees –electronic mode-regarding
- Budget '11-12' Parliament Completes Approval Exercise
- Satyam restrained from operating its accounts
- ICICI a foreign firm, subject to FDI norms: Govt
- Maha expects Rs 15 crore entertainment tax revenue from IPL
- CAG blames PMO for not acting against Kalmadi
- No service tax on visa facilitators: CBEC
- Provision of 15-minutes reading and planning time allowance to the candidates of Chartered Accountants Examinations
- Companies Bill to be taken up in Monsoon Session
- File Service Tax Return in time as Maximum Penalty increased 10 times to Rs. 20000
Comments