bhagyalakshmi (learner) (141 Points)
22 March 2011When a patnership Firm gives the Gold coin as reward to the Employees if they Achieve a target for sales......what is this Called as gift, Commisssion or Sale Incentive...??? And Under Which Head the TDS is to be deducted and the Rate of TDS?? Reply Soon Its Urgent.......Thanks in Advance
1.Yes , the partnership firm is required to deduct TDS on gold coin. (under sales incentives)
2.the amount on which TDS deducted will be higher of purchase cost to the company or market value of gold coin on the date of distribution to employee.( for safer side )
3.u/s 192
4. Add in salary for TDS
Rahul Agarwal
(Future CA)
(217 Points)
Replied 22 March 2011
It is just like variable salary for the employees.
So Mr. Amit is absolutely correct.
CA. Santosh Prajapati
(Practice)
(97 Points)
Replied 23 March 2011
TDS should be deducted under sec. 192B because there is employer / employee relationship,
The actual cost of the gold coin OR market value on transaction date which ever is higher, Should be taken as a value of the gold coin. than add the same as a salary incentive and deduct the TDS u/s 192B.
bhagyalakshmi
(learner)
(141 Points)
Replied 23 March 2011
Hey can u tell in same case if there is a wholesaler & Retailer Relationship......
Parul Agarwal
(Qualified Chartered Accountant)
(52 Points)
Replied 23 March 2011
Tds will be deducted u/s 192 when there is employer and employee relationship.
But TDS should not be deducted in case of retailer-wholesaler.
bhagyalakshmi
(learner)
(141 Points)
Replied 23 March 2011
Hey Parul,
R u Sure that TDS will not be Deducted..?? and can you say wat that Reward will be called if it is retailer-wholesaler realationship
Mohd Javed Khan
(CA FINAL)
(622 Points)
Replied 23 March 2011
| Originally posted by : AMIT TODKARI | ||
 |
1.Yes , the partnership firm is required to deduct TDS on gold coin. (under sales incentives) 2.the amount on which TDS deducted will be higher of purchase cost to the company or market value of gold coin on the date of distribution to employee.( for safer side ) 3.u/s 192 4. Add in salary for TDS |
 |
right said .........
Nitin
(Audit and Accounts Executive)
(64 Points)
Replied 24 March 2011
TDS should be falls in U/s 192B and the taxable amount is calculated as followes:
Gift amount wroth Rs. 5000/- is non taxable (only in the case of employee)
Amount above Rs. 5000/- is taxable in the hand of employee and this is responsiblity of employer to deduct the TDS in U/s 192B
Warm Regards
Nitin Aggarwal
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