I pay comm to various distributors. When making payments ill deduct TDS and make the payments. I also give them something in form of gifts under certain conditions like sales target, revenue etc., The following are my questions
1. Do i have to deduct TDS on the gift component also ? ( The value of gift is less than 5000 per gift)
2. Due to some reason if the gifts are given to the same person in different months and its value has gone more than 5000 what is that need to be done as per TDS sections
Would appriciate if the replies also has some case laws to support. This will have big impact on business based on the solution given.
CAclubindia
