payment in kind liable 4 TDS

ya...TDS is laible to be deposted in case of payment in KInd

@ sahil

thanks 4 reply

can u tell me how 2 determine TDS in both the cases....

if possible try 2 show the example.

sir

the payee needs to deposit the amount first with the payer...for eg. ...a person winning a car of Rs. 300000 in lottery will need to deposit cash in advance as TDS calculated at the rate of 30 % ...that is 90000...only after then he/she can take the delivery of car....... 

if payament is partly in kind & partly in Cash...then no problem...Cash payment will be accordingly reduced to the extent of TDS deductable on whole amt.( CASH + Kind)......if such cash is not sufficent for TDS amount...then exr=tra cash will hav to be deposited by payee

thanks sahil

but suppose  a CA is getting a car in consideration to his professional fees.

then how  his professional income is taxable.

or will it be come under other income????

kindly reply

car received by CA is the same case relating to example given by me...the thing is here the income is taxable as business income....& not as gift

can u tell me the whole journal entry.to show it in books.

sahil plz don't mind as i very confused about this 2 show in the books.