This discussion clarifies the applicability of Tax Deducted at Source (TDS) on cash prizes reimbursed by a manpower company. The consensus is that TDS should be deducted under Section 194C, especially when the invoice includes charges and the Service Accounting Code (SAC) mentioned is 998311.
01 March 2024
Manpower providing company gives cash prizes to employee. They raised invoice to us for the cash prize and with their charges. If we have to deduct TDS then deduct u/s 194R or 194C as SAC code mentioned in the bill 998311.