MAXIM FERNANDES (Partner) (55 Points)
17 August 2015Dear Experts,
In a Shopping Mall as a promotion activity and to attract customers we give gift vouchers to customers on selection basis. Whether TDS is applicable on Gift vouchers? If Yes at what rate and how we can account for it
For Ex:Gift voucher denominations are say 500 or 1000. how much TDS to be deducted?
Rashi Bajaj
(CA)
(752 Points)
Replied 17 August 2015
No TDS deductible as gift coupons given do not represent payment in terms of any contract/professional fees, etc. It is as good as discount given.
MAXIM FERNANDES
(Partner)
(55 Points)
Replied 18 August 2015
Thank you for the reply.
When we give motor car or motor bike as gift we deduct TDS @ 30%. Similarly when we give gift vouchers to customers whether TDS is applicable is my question.
Vishal Goel
(Chartered Accountant)
(1693 Points)
Replied 21 October 2015
Hello ,Maxim
Yes you are right in the case of motor car we deduct TDS but if we give gift voucher to customer then no need to deduct TDS because it is like a discount voucher & it will be adjusted against sale invoice. We are not giving any cash...it is discount.
If we give cash then we need to deduct tds…
CAclubindia
