| Question And Answer | |
|---|---|
| Subject: | SEC. 194R |
| Category: | Income-Tax |
| Querist: | Kulkarni P.S |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | sales incentive, Tax deduction at source |
| Date: | October 8, 2022 |
Assessee is partnership firm engaged in buainess as trading in all types of jewellery and as a part of sales pramotion scheme, assessee declares that they will provide Silver of double the quantity on of the transaction of purchase of Gold ornament. Eg. Purchase by gold ornamant of 100 gms, the assessee will give 200 gms of silver free.
Whether the provisions of TDS especially sec. 194R are applicable to such sales promotion schemes and if yes on which value the rate of perticular day?
On reading section 194R of the Income-tax Act, 1961 with Question No. 4 of CBDT Circular No. 12 of 2022 dated June 16, 2022 it becomes clear that sales incentive in the nature of silver or gold coins will attract section 194R of the Act at the rate of 10 per cent.