Scribd Logo
Upload

Welcome to Scribd!

  • Clarifications Provided by Circular No 12

    Uploaded by

    Abhishek Gupta
    10 views1 page
    This document provides clarifications on withholding tax under section 194R of the Indian Income Tax Act. It clarifies that: 1) Section 194R applies to all benefits provided to recipients, regardless of whether the benefit is taxable or not. 2) Section 194R applies to monetary as well as non-monetary benefits provided to recipients. 3) Withholding is to be done in the name of the recipient entity, even if the benefit is used by an owner, director, employee or relative of that entity.

    Original Description:

    Original Title

    2

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document provides clarifications on withholding tax under section 194R of the Indian Income Tax Act. It clarifies that: 1) Section 194R applies to all benefits provided to recipients, regardless of whether the benefit is taxable or not. 2) Section 194R applies to monetary as well as non-monetary benefits provided to recipients. 3) Withholding is to be done in the name of the recipient entity, even if the benefit is used by an owner, director, employee or relative of that entity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views1 page

    Clarifications Provided by Circular No 12

    Uploaded by

    Abhishek Gupta
    This document provides clarifications on withholding tax under section 194R of the Indian Income Tax Act. It clarifies that: 1) Section 194R applies to all benefits provided to recipients, regardless of whether the benefit is taxable or not. 2) Section 194R applies to monetary as well as non-monetary benefits provided to recipients. 3) Withholding is to be done in the name of the recipient entity, even if the benefit is used by an owner, director, employee or relative of that entity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Clarifications provided by Circular No 12

    Ravikarit Karnath

    Clarification Illustrative issue5

    Withholding uis 194R applieson benefit or perquisate provided. regardless of :-


    pi chargeab:e to tax uis 28.(iv)i 41(1) or other provisicms of ITA
    • whether it is chargeable to tax or not 10 Conflict with express language of s.194R. intent as per Exp Memo and FM Speech

    Distinct from s.195 and comparable to s.196D/PILCOM ratio (FAQ 1)

    5 . 194R also iapplies to monetary benefits


    u. Conflict with Mahindra & Mahindra (4041TR 1)

    r
    p. Proviso to S. 194R supports legislative intent to cover cash benefits(FAO 2)

    S. 194R also applies to benefit in the form of a capital asset (FAO 3) er Distinction between benefit received in form of capital asset vs. benefit rece;ved in
    course of acquisition of capital asset
    194P not appi ftable to sales cliscourit. cash discount and rebates - financialior quantitative

    I
    But clarincation not applicable to other benefits like car. TV. computers. gold coin. mobIte phone. o. Free medicine samples - whose benefitiperquiske?
    foreign trip. free ticket for event. free medicine samples (FAO 4)

    Withhotding uis 194R in the name of the recipient entlty even if the benefit is "used-
    by owner/ director/ employee or relative

    Threshold of INR 20.000 qua recipient entity Practical challenges of dual TD5 obligation

    Option to deduct dfrectiy in name of recipient consurtan: (FAO 4)

    20:25 I 1:43:32
    ri

    You might also like