Tds

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Manjunath u s (Querist)
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09 April 2012 Can anybody please tell me whether the the TIPS paid to the employee in a hotel industry attracts TDS U/S 192B? Is there any case law regarding the same?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 April 2012 Recently in the case of ITC Ltd v. CIT [2011-TIOL-287-HC-DEL-IT], the Delhi High Court (HC) held that the tips or service charges distributed to employees are to be treated as part of salary and tax is required to be withheld under section 192 of the Income-tax Act (the Act) from the same. The AO treated the value of these tips as ‘salary’ and held that the assessees were liable to withheld tax at source from such payments under section 192 of the Act.

For detail case law check out below link---

http://taxguru.in/income-tax-case-laws/tds-deducted-tips-passed-employees-hotel-employers-collected-customers.html

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Manjunath u s

Manjunath u s (Querist)
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09 April 2012 Thank u very much sir....

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