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Particulars
S.194R- TDS on benefit or perquisite of a business or profession (1 July 201
Provisions of s. 194R
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Which payment covered

Rate of TOS

Amount on which tax is

to be deducted

Ravikant Kamath
Person obligated to ► Benefit or perquisite, whether convertible into money or not. arising from business or exercise of profession, payable to resident
withhold
► 10% (not required to be enhanced by surcharge & cess)
► Not possible to avail lower/NH WHT certificate u/s. 197
Status of payee Oate

of applicability ► Value or aggregate > Rs. 20.000 during the FY

Timing of TOS ► Person responstolefor providing the benefit or perquisite(i.e. benefit provider)* defined in Exp to S.194R
► No TOS obligation on individuals or HUF where sales/ gross receipts/ turnover < INR 1 crore (business)/ INR 50 lakh (profession) during immediately preceding FY

► Should be a resident
TOS obligation for in-kind
payments ► 1 July 2022

► TOS to be deducted ‘before’ providing benef* or perquisite

Power toCBDT to issue
► First proviso covers benefit or perquisite
guidelines to remove
► Wholly in kind
difficulties
► Partly in cash and partly in kind but cash component insufficient to meet TOS on whole of the benefit/perquisfte
► Payer to ensure tax required to be deducted has been paid before releasing the benefit/perquisite

► Inserted at enactment stage of FB 2022 enabling the CBOT to issue guidelines for the purposes of removal of any difficulty in giving effect to the provisions of S.194R: to be placed before both
Houses of Parliament; Binding on both tax authorities and person responstole for providing

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