Dear Experts,
I need your expert opinion on the below query. Thanks in advance!.
As per section 194B, the tds triggers only on payment basis and i understand that, the threshold limit of Rs.10,000 for each payment. What if the game organizer put a restriction stating that, the winner can take the payment only upto 10,000 per day even though the prize is more than 10,000 to avoid TDS provisions. My doubts are:
a) Whether tds is applicable when the prize amount is more than 10,000? But the section 194B clearly states, the tds is to be deducted on payment of winnings from lottery and not on accrual.
b) What happens whe the players wins 5 games with a prize money of Rs. 10,000 for each game and took the payment of 50,000 in agregate but each payment less than 10,000?
c) is there any case laws on this issues?
CAclubindia
