Need opinion on TDS liability of distributor u/s 194R
Case Study: An MNC is passing sell out scheme payout to their wholesale distributor as per eligibility of sub-distributors. Company is deducting TDS u/s 194R of wholesale distributor on such payouts. Is wholesale distributor is liable to deduct TDS again on said payout while passing to sub- distributors.
6 Replies
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177970 Points)
Replied 24 November 2022
No. They are just distributing the same benefit to retailers.
Actually, they should advice to rectify the tds deduction over the retailers by giving their PAN numbers.
vinod
(Asst Accountatnt)
(51 Points)
Replied 24 November 2022
Providing Retailers Or Sub-distributors PAN is not feasible....considering the volume of retailer count and number of payouts.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177970 Points)
Replied 24 November 2022
In that case, TDS deduction by Distributors would be applicable, subject to applicability of the section over distributor/s.
sabyasachi mukherjee
(27574 Points)
Replied 25 November 2022
194 R
post actual values of the transaction.
post actual values of the transaction.
vinod
(Asst Accountatnt)
(51 Points)
Replied 25 November 2022
Transaction values are more than threshold limits
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