TDS-prize money

1389 views 5 replies

Hi

XYZ is a Company.Candidates are employed their through campus selection.for this HR organize competetion in different institute for the hiring of candidates and prize money are given to the winners i.e 50000,25000 by cheque.however it is not necessary that the winner candidate should be selected.the purpose of organizing events is just to promote the company name and select a good candidate.

My question is TDS should be deducted on such prize money while the purpose is recruitment of best candidate. if yes, by what rate 

Replies (5)

I think you should not deduct tds u/s 194B  Because it’s a recuitment of best person.

it is deductable @ 30% u/s 194 B as the sec says winning by way of lottery, crossword puzzle, card game or game of any sort.

If the expenses is booked in accounting as recruitment expenses, TDS is not deductible but if expenses is booked as Award or Prize u have to deduct TDS 30%

for the cheque payment,ensure that tds is either collected from the winner or borne by the company,,,..for Cash payment see that TDS was dedeucted or not..rate is 30%

for the cheque payment,ensure that tds is either collected from the winner or borne by the company,,,..for Cash payment see that TDS was dedeucted or not..rate is 30%


 


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