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Tax Applicability on Sales Promotion

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(Querist)
23 October 2021 Sir,

I want to know the tax implication on a Company or LLP which was given a Car free of cost to a customer in connection with a sales promotion campaign.
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
23 October 2021 Is it company car or rented one?
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SUDHEEP M

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SUDHEEP M (Querist)
23 October 2021 Car was given as a gift to the customer. Car was purchased in the name of the customer, but payment was given by the company / LLP.
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
23 October 2021 The cost of car can be debited to sales promotion expense. No additional tax liability.
But TDS has to be collected from the customer at 30% +cess.
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SUDHEEP M

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SUDHEEP M (Querist)
23 October 2021 Sir kindly clarify in which section TDS should be Collected and Paid
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
23 October 2021 Sec. 194B of IT act...
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SUDHEEP M

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SUDHEEP M (Querist)
23 October 2021 k.. Thank You Sir...
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
23 October 2021 My Pleasure ...
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