Open Challenge..Solve If You Can..Its Easy

Cosider the  Following case:

Mr. X came First time to India on 11th April 2011 for three months. Just to enjoy his vacation.

In between that he heard that there is draw on Kingsfisher Products. He buy that product and fortunately after one month winners name were declared and  Mr. X won the first Prize 

He got One Car amounting to Rs. 520000 and cash prize of Rs. 200000

According to the terms of the game Kingfisher can recover any taxes to be payable by winner from the cash prizes to be given to the winner only.

Now Determine the amount of TDS to be deposited by Kingfisher to the Government?

Replies (26)
tds should be deducted on cash price of 200000
tds amount would be 60000

what about the car....you are saying that CAR is free of TDS?

You are wrong Future CA....CAR is not tax Free

Only some terms of contract cannot supercede income tax act so kingfisher is liable to pay TDS @ 30% on both cash prize and car........

Tds to be deposited:-

200000*30%=60000

             +

let x=tds

x=(520000+x)*30%

x=156000+.3x

0.7x=156000

x=222857/-


Total amount of TDS to be deposited = 222857+60000 i.e Rs. 2,82,857/-


correct me if m wrong

in my view the car should be taken as advertisement expense hence tds on car should be deducted for whome car is purchased. rectify me if i am wrong

it will be Rs. 232533


It is calculated as below...

Value of Car = 520000

Cash = 200000

Total Wiinig Value = 720000

TDS (tax) = (720000 + tax) x 30.90% - 200000 (recovery of tax)

22480 + 0.309Tax = Tax

Tax = 22480/0.691 = 32533

TDS to be deposit with CG = 32533 + 200000 = Rs. 232533

Sorry Ankur Your answer is wrong

No Future CA, Car cannot be taken as a adevertisement expenses...it has been given to the winner as a prize

thanks for rectifying me        

what about my ans dear...????

give your answer so that all can know

Now give your answer too buddy.......

Hey Arvind Answer is Correct

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