TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2011 a)Whether TDS is to be done in respect of gifts given to dealers on achieving certain targets??

b)Whether TDS is to be done on gifts further given by draw of lots to dealers on achieving the above targets??

ABHISEK TOSNIWAL

ABHISEK TOSNIWAL (Expert)
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21 June 2011 No in your case TDS is not required to be deducted as giving gift to dealers or buyers is a businss expenditure which doesn't fall under the purveiw of TDS.

Regards

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2011 Thanks for the reply but will not S 194B apply to cases where gifts are given to delers by draw of lots??

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ABHISEK TOSNIWAL

ABHISEK TOSNIWAL (Expert)
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21 June 2011 No sec 94B will not apply as this section is for winnings from lottery or game of any sort.Here we need to see the substance which as per my thinking says that prizes are given for achieving sales target and we cannot say it as winnings from lottery.This is said to be a business activity.

Regards
Abhisek Tosniwal