Gift to professional-194j applicability

TDS / TCS 993 views 3 replies

Hi 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???

Replies (3)

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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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

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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