Dear Sir / Friends
Do we need to deduct on one time payment made to an Amusement Park for entertaining employess , amount exceeding Rs 100000 .? pls quote the section under which we have to deduct ??
J.KARTHICK (ARTICLED TRAINEE) (73 Points)
15 July 2009Dear Sir / Friends
Do we need to deduct on one time payment made to an Amusement Park for entertaining employess , amount exceeding Rs 100000 .? pls quote the section under which we have to deduct ??
CA.kaya
(Chartered accountant)
(3990 Points)
Replied 15 July 2009
is it a contract . if yes then Sec. 194C applies
RITESH KOTHARI
(B.COM, FCA, DISA(ICAI))
(778 Points)
Replied 15 July 2009
No liability to deduct TDS. Treat it as employees welfare/ Staff welfare/Entertainment Expenses.
but if you have an yaerly contract or something with that amusement park then it is a contract and u have to deduct TDS u/s 194C @ 2.06% (1.03% w.e.f. 01-10-2009 if payee is an individual)
Jyoti Gupta
(CA student)
(71 Points)
Replied 17 July 2009
Ritesh is right.If it is in the nature of contract then only TDS u/s 194C will be deducted.otherwise it is entertainment expenses .
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
CAclubindia
