Liability to pay gst on perquisites received us 194 of income tax act

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This discussion explores whether Goods and Services Tax (GST) is payable on perquisites received by a dealer for achieving sales targets, especially when Tax Deducted at Source (TDS) under Section 194R of the Income Tax Act has been deducted. While some suggest target-based incentives attract 18% GST, others argue that gifts exceeding £20,000 annually, subject to TDS under Section 194R, have no further GST implications, avoiding 'tax on tax'.

Krishna

Krishna (Querist)

06 October 2023 where dealer received gold as a perquisite for achieving target sales & tds is deducted us 194R. Does dealer is liable to pay gst on this as it is received in the course of business ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

07 October 2023 Target-based incentives to attract 18% GST.

Thiyagarajan Kandasamy

Thiyagarajan Kandasamy (Expert)

07 October 2023 Actually Tax on Tax will not come, if any delaer received any kindl of gift which value more than Rs.20,000/- per anum TDS as per 194 R will be deducted and no GST implications will not apply.

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