TDS on gifts to sales man
This query is : Resolved
Hemant Gupta
(Querist)
23 July 2009
A Partnership firm engaged in the business of selling medicines is providing INCENTIVES to its representatives for selling the products and making the members.
further it is distributing some GIFTS like mobiles, TV etc to its representatives on achieving certain targets.
I want to know that, is the firm liable to deduct the TDS on the INCENTIVES and GIFTS. If yes what are the rates and under what section.
further it is distributing some GIFTS like mobiles, TV etc to its representatives on achieving certain targets.
I want to know that, is the firm liable to deduct the TDS on the INCENTIVES and GIFTS. If yes what are the rates and under what section.
chetan soni
(Expert)
23 July 2009
Check following things,
1. Is representatives are employees of the firm
2. If yes, then gifts above 5000 per year per person is taxable in the hands of employees as salary.
3. If they are not employees then it will be considered as sales promotion expenses, necessary TDS needs to be deducted.
1. Is representatives are employees of the firm
2. If yes, then gifts above 5000 per year per person is taxable in the hands of employees as salary.
3. If they are not employees then it will be considered as sales promotion expenses, necessary TDS needs to be deducted.
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