llllVICTORllll (Internal Auditor) (511 Points)
22 October 2012Hi friends
My Doubt is, Shoud TDS under section 194J be dedcuted, if company gives gift to a professional(his regular fee is above TDS limit and TDS is deducted), not towards any professional service but as sales promotion expense?(his activity has nothing to do with company's product or sales directly)
Yes, without thinking we can say TDS to be deducted.
But my doubt is, as there is no bill raised for any service and this gift is not set off against any bill payable. still is TDS attracted???
@VaibhavJ
(Believe!! Live your dreams!)
(33511 Points)
Replied 22 October 2012
Hi
No TSD to be deducted or Gift in kind, however value of gift shold be reasonabble to avoid descrepancies.
Rgds//Vaibahv
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llllVICTORllll
(Internal Auditor)
(511 Points)
Replied 23 October 2012
But my doubt is, could department argue that, the gift is in way a method to avoid TDS and income tax, by collecting gift and in return reducing the bill amount??
I think thats one of the reason why department doesnot allow reimbursement of expense billing unless accompanied by supporting
Please clarify
@VaibhavJ
(Believe!! Live your dreams!)
(33511 Points)
Replied 23 October 2012
Hi
This is not a reimbusrement and you will be supporting expenses made on purchase of gift by sellers Invoice.
Rgds//Vaibhav
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