Tds liabilty on purchase of gift vouchers

This query is : Resolved

CA Khyati Pithadia (Querist)
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27 February 2014 One company purchases Gift vouchers, for the purpose of distribution to its employees, of equal amount from the another company and payment for the same is also made. Whether this payment attracts tds deduction liabilty ? Further, under which section tds liability arises ?

Can you give me reply for the same ?

Thanks in advance....

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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27 February 2014 Gift voucher does not attract any TDS liability as it is a type of perquisite to the employees and if at all the TDS is to be deducted the same is to be included in the total income of the employee and accordingly it is to be deducted u/s 192 as perquisite.