19 November 2009
Hi, In my organisation assured gifts are given to customers on achievement of some sales target. I would like to know whether there is any TDS implication if we purchase those gifts & give in FOC to the customers. I think in case of gifts where the winner is selected by luck is liable for TDS u/s 194B Need clarity on this.
20 November 2009
Yes, you are right. If the winner is selected by luck then the provisions of sec 194B will attract.
In your case the gifts are given to customer, this will be a part of sales promotion expenses or client entertainment expenses. The provisions of TDS will not apply.
CAclubindia
