banner_ad

Tax liability

This query is : Resolved 
Profile Image

Profile Image

(Querist)
20 October 2012 Our 1 client dealing in garments company. They are going to provide promotional scheme. The minimum purchase is Rs.10000 for becoming promotional participant and when the 500 customers comes under this scheme till new year scheme will open. After that 50 customers will get 100% purchase amount return. Whether cash return is justified through DD or cheque ? Under lottery scheme TDS liability has to be arised ? or Cash payment not prohibited under lottery scheme? For this scheme any license is being required ?
Profile Image

Soumitra Basu

Profile Image

Soumitra Basu (Expert)
21 October 2012 IT IS NOT A LOTTERY. IT IS JUST A DISCOUNT/REBATE OF THE SUCCESSFUL CUSTOMER. YES CASH PAYMENT IS PROHIBITED BEYOND THE CEILING LIMIT. NO TDS SHALL BE ATTRACTED. MOREOVER, IT HAS ALREADY BEEN DECIDED THAT IF THE PAYMENT IS MADE WITHINT THE FINANCIAL YEAR NO DISALLOWANCE SHALL BE MADE UNDER SECTION 40(A)(ia).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
09 May 2026
Audit Manager

Kanna and Associates

Coimbatore

CA Inter

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details