Tax Applicability on Sales Promotion

This query is : Resolved

SUDHEEP M (Querist)
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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.

Dhirajlal Rambhia

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

SUDHEEP M

SUDHEEP M (Querist)
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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.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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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.

SUDHEEP M

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

Dhirajlal Rambhia

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

SUDHEEP M

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

Dhirajlal Rambhia

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