Tds 194b

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Guest

Guest (Querist)

07 November 2012 If a person win a contest and earn Rs.200000/- cash prize and a Car ( worth Rs.800000/-)than how much tax liability arise as per sec 194B.

Plz reply with workings.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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22 November 2012 There can be two cases:

1. Where the TDS on car value is recovered separately from the winner:

Total TDS = (2,00,000+8,00,000) * 30.9%
= Rs. 3,09,000

In this case, the winner will receive the car and will have to pay Rs. 1,09,000 to the organiser.

2. Where the TDS is not separately recovered from the winner:

TDS on car = 8,00,000*30.9/130.90 = Rs. 1,88,846
TDS on cash = Rs. 61,800

Total TDS = Rs. 2,50,646

The winner will receive the car and will have to pay Rs. 50,646 to the organiser.

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