Tds u/s 194b

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2013 Dear Experts,

my client is a private ltd company and having retail pesticide business. he having the dealers/Distributors state-wise. at the end of the year client launch a scheme to dealer who achieve the target sales like distribution of LCD/Laptop/Fridge, Gold coins and Vehicles etc at free of cost.

please advise whether company should pay TDS u/s 194B or not .

Please advise.
Vijay Jain

Nitesh Parmar

Nitesh Parmar (Expert)
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20 September 2013 Yes TDS will be applicable if you are giving as a gift.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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20 September 2013 Yes, TDS U/S 194B will attract,
Company should deduct TDS on such gift...

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 September 2013 Sorry to disagree. I don't think 194B applies here.

194B deals with winnings from lottery and crossword puzzles.

The relevant section should 194H.

Thanks

CA Pallav Singhania

CA Pallav Singhania (Expert)
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20 September 2013 If such LCD, Tv etc. given as commission then TDS will be deducted U/S 194 H...

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 September 2013 Dear Aryan, any gift given for achieving sales target will be covered under 194H, irrespective of its form and price.

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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20 September 2013 Agree with learned Expert Nikhil ji,

Section 194H will be applicable and it will be treated as commission..