TDS section 194R

Is TDS liability incurred u/s 194 R if we issue credit note to distributor on reimbursement of expenses for small gifts and refreshments in get together to promote the business on our behalf.

Bill will be in name of distributor and amount is above 20000/-

 

Thank You

Neeta

Replies (3)
Quick Summary
This discussion explores whether Tax Deducted at Source (TDS) under Section 194R is applicable when a company issues a credit note to a distributor for expenses related to gifts and refreshments provided at business-promoting events. The query specifically asks about reimbursements where the bill is in the distributor's name and the amount exceeds £20,000. Initial responses suggest TDS is applicable in this scenario, but a follow-up question regarding reimbursement of cleaning materials by a housekeeping agency receives a negative response, indicating nuance in the application of Section 194R.

Yes, TDS will be applicable.

Sir if a house keeping agency purchases materials for cleaning and service recipient reimburses the same, whether TDS should be deducted as reimbursement of out of pocket expenses is liable for TDS deduction under 194R

No, not applicable...                   

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