RAJ KUMAR (FINANCE MANAGER) (1393 Points)
24 August 2012HELLO FRIENDS, MY CLIENT HAS INTRODUCED SCHEMES FOR SALES PROMOTION THAT IS ON PURCHASE OF 5000 CAMERA FREE.
ON PURCHASE OF 20000 MOBILE FREE.
I WANT TO ASK WHETHER THIS IS CASUAL INCOME AND HE HAS TO DEDUCT TDS.
WHAT IS ACCOUNTING ENTRY.
PLS. TELL ME.
THANKS.
CA Saiyum khan
(Practicing CA)
(690 Points)
Replied 24 August 2012
The value of camera or Mobile is not casual income and hence no TDS is deducted. The value of camera and mobile has to be debited in the cost of goods sold or alterantively you can debit the sales promotion expenses.
RAJ KUMAR
(FINANCE MANAGER)
(1393 Points)
Replied 24 August 2012
BUT MY CLIENT IS NOT A CAMERA MOBILE DEALER.
HE HAS WHOLESALE BUSINESS OF KARYANA GOODS.
IN THAT CASE WHAT I DO?
RAJ KUMAR
(FINANCE MANAGER)
(1393 Points)
Replied 25 August 2012
SUPPOSE IF THEY START GIVING COUPONS TO THE CUSTOMERS AND SAYS THAT WINNER SHOULD BE ANNOUNCED AND PRIZES ARE GIVEN THEN IT BECAME THE CASE OF CASUAL INCOME OR NOT.
PLS. HELP ME.
THANKS.
RAJ KUMAR
(FINANCE MANAGER)
(1393 Points)
Replied 25 August 2012
WHETHER FREE COUPNS AND WINNING BY LOT SCHEME ATTRACTS PRIZE AND MONEY CIRCULATION BANNING ACT 1978.
CAclubindia
