Is TDS Applicable

1.Yes , the partnership firm is required to deduct TDS on gold coin. (under sales incentives)

2.the amount on which TDS deducted will be higher of purchase cost to the company or  market value of gold coin on the date of distribution to employee.( for safer side )

3.u/s 192

4. Add in salary for TDS

It is just like variable salary for the employees.

So Mr. Amit is absolutely correct.

TDS should be deducted under sec. 192B because there is employer / employee relationship,

The actual cost of the gold coin OR market value on transaction date which ever is higher, Should be taken as a value of the gold coin. than add the same as a salary incentive and deduct the TDS u/s 192B.  

agreed with all above my frnds

salary... add as a perque... TDS u/s 192....

Hey can u tell in same case if there is a wholesaler  &  Retailer  Relationship......

yes i also agree with my frnds

Tds will be deducted u/s 192 when there is employer and employee relationship.

But TDS should not be deducted in case of retailer-wholesaler.

Hey Parul,

R u Sure that TDS will not be Deducted..?? and can you say wat that Reward will be called if it is retailer-wholesaler realationship

Originally posted by : AMIT TODKARI
	1.Yes , the partnership firm is required to deduct TDS on gold coin. (under sales incentives) 2.the amount on which TDS deducted will be higher of purchase cost to the company or  market value of gold coin on the date of distribution to employee.( for safer side ) 3.u/s 192 4. Add in salary for TDS

right said .........

TDS should be falls in U/s 192B and the taxable amount is calculated as followes:

Gift amount wroth Rs. 5000/- is non taxable (only in the case of employee)

Amount above Rs. 5000/- is taxable in the hand of employee and this is responsiblity of employer to deduct the TDS in U/s 192B

Warm Regards

Nitin Aggarwal