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TDS on prize giver to wholesaler/ distributor

This query is : Resolved 

27 November 2019 Hi,

This query is regarding a company, which runs a contest for their wholesaler with respect to visibility of their product, quantity available, etc.

Channel is as follows:
1. Let say company A ask company B to manufacture on their behalf.
2. Company B directly send goods to Distributor
3. Distributor sell it to wholesaler and wholesaler to retailer.
4. Now, competition is for wholesaler.
5. 10 out of 100 wholesaler won on above criteria.
6. all got motor bikes costing 60k each.
7. Does TDS provision is applicable here?
8. Does TDS must be collected from wholesaler before handing over the motor bike ?

Please help me with this query.

27 November 2019 Treat it as business incentive no TDS applicable.


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