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    Abhishek Gupta
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    This document provides clarifications on certain issues related to Section 194R of the Indian Income Tax Act. It clarifies that no TDS applies if a dealer/business conference has the primary objective of educating dealers/customers, but TDS does apply if the conference provides incentives or benefits to select dealers/customers. It also clarifies that providers of in-kind benefits/perquisites must obtain tax documents from recipients and properly report the benefits. Finally, it states that benefits provided from April to June 2022 count toward the annual Rs. 20,000 threshold for TDS, even though no TDS was required during that period.

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    This document provides clarifications on certain issues related to Section 194R of the Indian Income Tax Act. It clarifies that no TDS applies if a dealer/business conference has the primary objective of educating dealers/customers, but TDS does apply if the conference provides incentives or benefits to select dealers/customers. It also clarifies that providers of in-kind benefits/perquisites must obtain tax documents from recipients and properly report the benefits. Finally, it states that benefits provided from April to June 2022 count toward the annual Rs. 20,000 threshold for TDS, even though no TDS was required during that period.

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    11 views2 pages

    4 Ocr

    Uploaded by

    Abhishek Gupta
    This document provides clarifications on certain issues related to Section 194R of the Indian Income Tax Act. It clarifies that no TDS applies if a dealer/business conference has the primary objective of educating dealers/customers, but TDS does apply if the conference provides incentives or benefits to select dealers/customers. It also clarifies that providers of in-kind benefits/perquisites must obtain tax documents from recipients and properly report the benefits. Finally, it states that benefits provided from April to June 2022 count toward the annual Rs. 20,000 threshold for TDS, even though no TDS was required during that period.

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    of 2

    Clarifications provided by Circular No 12

    \
    Ravikant Kamath

    Clarification Issues

    Applicability of S. 194R to dealer/business conferences(FAO 8)

    ► No TDS if dealer/business conference with primary objective to educate


    dealers/customerson specified aspects ► Appropriate methodology/ documentation for identification of
    ► TDS applicable if :* ► Incidental leisure expenses
    ► Conference in nature of incentives/benefits to select dealers/customers who ► Incremental expenses for family members and prior/overstay
    have achieved particular targets
    ► Expense attributable to leisure (even if incidental), family members, prior or
    overstay
    Ensuring compliance for in* kind benefits/perquisites(FAQ 9)
    ► Whether provider can collect tax from recipient and deposit as TDS?
    ► Provider to obtain copy of advance tax challan & declaration from payee and ► Clarity required on manner of grossing up of TDS borne by provider of benefit
    report appropriately in Form 260
    ► Alternatively, deduct and pay on 'net of tax' basis
    Computation of threshold of INR 20.000 in FY 2022*23 (FAO 10)

    ► Value of benefits/perquisites provided from April to June 2022 to be counted for


    threshold of INR 20.000 although no TDS required on such
    benefits/perquisites

    31:28 / 1:43:32 Q

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