Please give your expert opinion on 194B

Section 194B is applicable in case of gifts. In case of credit note is given instead of gift in kind, the company may deduct tax at source @ 30% from the amount of credit note.

If the amount of credit note can also be shown as commission of discount to painters, so TDS u/s 194B shall not be applicable. However, TDS u/s 194H (brokerage and commission) shall be applicable.

Hi Sivaram,

I will suggest you not to route the entry through dealer because it is complicated & avoidance of Sec.194B.In my opinion your company should pay the TDS & same shall be shown by you as loan & advances which is to be recovered from Influencers in small amts. periodically.

in a nutshell u want to save the 30% burden of TDS applicable 

in such case get all such scooties registered in name of principal company + painter ( joint holder) then transfer the same at a later date on wdv or lesser as bonus for marketing your products. 

this will reduce your tax burdens, 100% exemption not possible !!