Akash Gupta (Accounting) (69 Points)
28 April 2019Hello everyone,
I have a small query -
In a marketplace kind of model, if the vendors are paid only through Gift Vouchers (no real cash going to their bank accounts), will TDS provisions be applicable ?
Thanks in advance for your time and attention to this query.
Rohan Gundappa
(student)
(304 Points)
Replied 28 April 2019
The gift voucher would be deposited to bank by the vendor, just like cheque/s. Your TDS liability doesn't nullify.
Akash Gupta
(Accounting)
(69 Points)
Replied 29 April 2019
Thank you Rohan.
No, these will not be cash redeemable vouchers. These will only be Amazon, Flipkart, Big Bazar kind of vouchers. Will the TDS principles still apply ?
Rohan Gundappa
(student)
(304 Points)
Replied 29 April 2019
Even then you have to pay for the coupons, which in turn qualifies payment for the service/s which needs TDS deduction.
CA Chandra Prakash
(9873059766 Increasing knowledge through sharing)
(296 Points)
Replied 29 April 2019
Payment through coupan is merely a option of payment it will not change the applicability of TDS provisions.
CAclubindia
