Dear Sir / Friends
Do we need to deduct on one time payment made to an Amusement Park for entertaining employess , amount exceeding Rs 100000 .? pls quote the section under which we have to deduct ??
Dear Sir / Friends
Do we need to deduct on one time payment made to an Amusement Park for entertaining employess , amount exceeding Rs 100000 .? pls quote the section under which we have to deduct ??
is it a contract . if yes then Sec. 194C applies
No liability to deduct TDS. Treat it as employees welfare/ Staff welfare/Entertainment Expenses.
but if you have an yaerly contract or something with that amusement park then it is a contract and u have to deduct TDS u/s 194C @ 2.06% (1.03% w.e.f. 01-10-2009 if payee is an individual)
Ritesh is right.If it is in the nature of contract then only TDS u/s 194C will be deducted.otherwise it is entertainment expenses .
YOGESH KAPOOR AND ASSOCIATES
New Delhi
B.Com
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