Traget based incentives

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2010 In case a company give to its dealers some incentive based on targets given in the form of 1)cash/cheque 2)By issuing material free of cost (same items in which the company deals /dealers has purchased )for the incentive amount or issuing credit note by and adjusting the amount from the amount payable by the dealer3)By Gifting some other items like TV,Fridge etc.

--pl reply with regard to applicability of TDS,or any act ,rules which can apply-

In case company outsource this service to a third party for receiving ,processing & settlement of claims & reimbursing that 3rd party the claim amount as well as their commission/charges for services ,what all rules/acts will be applicable for the compnay & for 3rd party agency?

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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03 August 2010 1. TDS will reply as the above are in the nature of commission (Cash / Cheque / Credit Note)

Issued material free of cost can be done without TDS as it can be shown as part of sale invoice...

2. TDS will apply on the charges of 3rd party.

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