Hello friends,
My company is giving a car in gift (under lottery) costing INR 5 Lacs to a customer.
Customer is ready to reimburse TDS @ 10% and requesting company to pay remaning 20%.
Please guide me how much tax company should pay and @ what amount.
Please provide calculation and logic behind the calculation.
Awaiting for an early reply.
Thanks
Your case is covered u/s 194B
if the prizes awarded are in kind, the prize distributor will, before releasing the prize, ensure that tax has been paid in respect of the winnings. It will either recover it from the winner or bear the tax liability itself and deposit TDS.
Yes, Agree with Ms Saloni.
It is an understanding between you and your company who bears the burden of TDS and how much.
U r right Saloni ji..........
VIKAS VERMA & CO
New Delhi
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