Free sample to customer

Is free sample given by manufacturer company to customer come under purview of 194 R?
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Quick Summary
This discussion clarifies whether free samples given by a manufacturer to customers are subject to Section 194R of the Income Tax Act. The general consensus is yes, they do fall under its purview. However, no tax deduction is required if the total value of benefits or perquisites provided in a financial year does not exceed Rs. 20,000.

Yes.

No tax shall be deducted under this provision if the value or aggregate of the value of the benefit or perquisite provided or likely to be provided during the financial year does not exceed Rs. 20,000.

Free sample to customer.

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