194R TDS

In following events who is responsible to deduct tax under 194R
1) T.V.set given as gift to dealer
2) Cash worth Rs. 50000/- given to dealer as a gift
Both gifts are business purpose
In No.1 & 2 who is responsible to deduct & pay tax under 194R
In No.1 suppose deduct Tds by perquisites provider , is it treated as
advance tax payment.
Replies (5)
Quick Summary
This discussion clarifies the responsibility for deducting tax under Section 194R, particularly concerning gifts and perquisites given to dealers for business purposes. It explains that the provider of the benefit or gift is generally responsible for deducting TDS and paying it to the government. The summary also outlines exceptions, such as employer-employee relationships (covered by Section 192) and non-resident recipients (covered by Section 195), and clarifies that charity donations are typically not liable under this section.

both cases provider of perquisite / gift needs to pay tax.

you need to raise the Debit note for TDS amount on the dealer to pay the Tax.

Service provider required to deduct TDS.
We are making payment towards charity , Donation, also give reward payment to employee.
can above expenses are liable for TDS under section 194R

Tax is required to be deducted under this provision if the benefit or perquisite is provided to a resident person and it is arising from business or the exercise of a profession by such resident. However, in the following situations, the tax shall not be deducted under this provision: 

1. If an employer-employee relationship exists, the tax shall be deducted under Section 192;

2. If the recipient is a non-resident, the tax shall be deducted under Section 195;

3. If the benefits or perquisites do not have a connection with the business or profession of the resident recipient/deductee;

4. If benefits or perquisites are provided to a customer who does not engage in business or exercise of a profession

So Charity / Donation not liable since the recipient does not engage in business with you.

payment to employees in any form is dealt with as per section 192, so not covered in this.

 

Thanks

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details