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Seller insisting to redo ATS agreement to sale to lower tax amount

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Seller insisting to redo ATS agreement to sale to lower tax amount

Last updated: October 24 2018
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  • Seller insisting to redo ATS agreement to sale to lower tax amount

    I am buyer and recently done ATS with buyer who is an NRI.

    Amount is 94 Lakhs. And as per ATS I have paid him Rs 5 Lakhs.Basis on this I have got my home loan process initiated.



    Seller is working with CA to get some tax certificate which will lessen his tax burden.For this his CA has suggested him to have another ATS in which it should be mentioned that no advance is paid( he is ready to transfer the advance paid already to me back), but I have reservations



    1. This may cause issue for me where bank will have first version of ATS and seller’s CA would submit another version in Income tax office.



    2. I got to know from somebody that any ATS which is done without any amount mentioned as advance have lesser legal bearing in event if dispute.



    Please validate my apprehensions and suggest an alternative.
    Last edited October 24 2018, 08:39 PM.
  • #2

    #2

    Re : Seller insisting to redo ATS agreement to sale to lower tax amount

    Hope you are aware of the tedious ordeal coming your way by buying property from an NRI.

    If not, dont go for it unless its a really good deal. (you need to get TAN, deduct 20.66% LT CGT on total value, fill 27q return.. etc bullshiit)

    I can say that from my exp of buying a resale property from a NRI through GPA and having taken loan from a nationalised bank.

    Please go through my replies on the NRI forum.

    Now for the ATS part -

    I would recommend to go with the seller and have minimum value on paper. Its good for all. As less amount of TDS at risk, less stamp duty etc.

    ATS can be done several times, the bank will consider only the one you say as final. (we did around 4-5 as didn't knew the crazy IT rules for NRI).



    Last thing - why teh hell did you let the bank know about the seller's NRI status. I was honest and in good faith told the bank and they made me run after them for 4 months for disbursement.




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