TDS on gift

1. Our company offering some gift like TV, Firdge etc. on specific amount of purchase. In this reg. TDS applicable or not. Also if any TAX applicable or not

2. If we give cash instead of gift then also TDS applicale or not.

Replies (12)

No TDS applicable on this transaction...

Not applicable......!!!!!!

@ ! @

S.S.D.N

i think tds is applicable...as per the ammendment if the assessee is giving gift in kind to any person free of cost...then on that tds is applicable....

agree With Amit Ji

TDS will not be applicable as this is the scheme which company offers to customer.

Eg.. If you purchase 1 LCD you will get 1 DVD as free

The DVD cost has already been included in the cost of LCD and on that company is paying VAT.

Hence There will not be any TDS applicability in this case.

under which sec u can deduct.....so specific....sec 

NO TDS DEDUCTED....

NO IN THIS TRSACTION NO TDS IS DEDUCTED...

Originally posted by : Deepak Tapse
1. Our company offering some gift like TV, Firdge etc. on specific amount of purchase. In this reg. TDS applicable or not. Also if any TAX applicable or not
2. If we give cash instead of gift then also TDS applicale or not.

depends on the accounting of the gifts, if the gifts are made from capital reserve ( post tax capital account) then no TDS, but

if the gifts are claimed as expenditure in P/L as business promotion expenses, then its part of commission and hence TDS applicable. 

gifts are not taxable coz its capital tranfer from the hands of doner, and on which the doner has already paid the taxes as per their slab rate !!

No TDs will be applicable on this transaction

This is a pure case of sale, hence no TDS to be deducted.

What about if we pay amount instead of  Gift.

Even if you pay Amount i.e. CN.. TDS will not applicable.

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