TDS u/s 194R..

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This discussion addresses how to account for TDS deducted under Section 194R on BPCL/HPCL Petro Cards when the reward points haven't been received in any account. The consensus is to treat Petro Points as current assets and TDS as a deduction. The points are considered a perquisite received from the oil company, with TDS deducted for not submitting a timely declaration. The accounting treatment involves debiting Petro Points, debiting TDS, and crediting perquisites, with Petro Points being nullified upon redemption for products or cash.

H Thakar

H Thakar (Querist)
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31 July 2023 I am having Petro Cards of BPCL/HPCL. In 26 AS shows TDS deducted u/s 194R. Amount is not received in any account. What will be accounting for Tds and Rewards/perquisites in my books.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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02 August 2023 Dr. Petro points
Dr. TDS

Cr. perquisits

H Thakar

H Thakar (Querist)
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02 August 2023 Noted. But under which head Petro Points to be shown?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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02 August 2023 Current assets.

H Thakar

H Thakar (Querist)
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09 August 2023 Noted. But Petro Points will show debit balance. How to nullify the effect.

Can i write off the same? or any other way

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 August 2023 When you redeem the Petro-points against any product or cash...

H Thakar

H Thakar (Querist)
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09 August 2023 This is perquisite received from BPCL, Tds was deducted because declaration was not provided on time. And no further redemption of the same in upcoming years

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 August 2023 En-cash the petro points in terms of any cash amount received.

what is the perquisite amount received as per form 26AS? & in which form you received the amount? By any credits in bill amount?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 September 2024 Good Luck.

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