- It is not a expenditure therefore no question of TDS liability. It is a type of loan which will be reflected in the balance sheet and receivable from the customer in future.
EMI of Customer paid by Builder.Tax treatment in the hands of builder
These days builders are providing schemes to the customers wherein till the handover of the possession of the property the EMI is paid by the builder through customer to the bank. What is the tax implication in the hands of the builder and what is the nature of expenditure to be booked in the hands of the builder. The impact of TDS if any shall also be clarified. Thank you
Asked 3 years ago in Income Tax
Dear Sir,
As per the latest Changes by National Housing Bank, The builders can no longer give services which involves paying EMI on behalf of customer.Hence, these types of services are prohibited.
Thanks and Regards
Shiv Kumar Agarwal
What is this EMI that you are taking about.
Anywhich ways if builder is taking amount in advance then GST needs to be charged.
Also customer needs to deduct at payment.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hello,
Not an expenditure. It would be a Balance Sheet item.
Regards,
CA Hunny Badlani
Dear Sir,
Hope you are doing well !!
It's not an expenditure. No TDS impact on the same.
Hi
It is not an expenditure but if it is a advance payment you need deduct GST no need to deduct TDS.
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