SR.NO.
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Particulars
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Conditions
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1.
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Applicable to
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-Audited Individual Firm, Partnership Firm, Company
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2.
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Rate of TDS
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10% of Cash Payment or Value of any Kind
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3.
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Who has to Deduct Tax
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If any person provides any benefit or perquisite, or gifts to any resident person without any consideration pertaining to Business/profession.
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4.
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Threshold Limit
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20000/- (Benefit, gift, perquisite etc. more than twenty thousand)
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5.
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Type of Benefit/perquisite
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When a person gives incentives in cash or kind such as TV, car, computers, gold coin, mobile phone, etc.
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When a person sponsors a trip for the recipient and his/her relatives upon achieving certain targets
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When a person provides a free ticket for an event
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When a person gives medicine samples free to a medical practitioner
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Provides any free gift provided to social media influencers to promote it on the social media as a part of business promotion
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Expenditure incurred for family members accompanying the person attending the business conference
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Expense attributable to leisure trip or leisure component, even if it is incidental to the dealer/business conference.
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Expenditure on participants of dealer/business conference for days which are on account of prior stay or overstay beyond the dates of such conference.
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Exception
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Non-Audited Individual or HUF whose turnover is less than 1 cr (Professional Receipt below 50 lakh)
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sales discount, cash discount or any rebate, warranty claim given on sold goods
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Valuation of perquisite
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Benefit in Cash: Amount of cash
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Benefit in kind: Fair market value of such gifts or benefits, such value should be before adding GST on such value.
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