TDS on incentives

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..... TDS on incentives
Query (Issue) Started By: - KRISHNAMURTHY S P Dated:- 16-9-2009 Last Reply Date:- 18-9-2009 Income Tax
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Income Tax
Company having dealers all over india, sup .....

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..... ply goods to dealers under a contract of sale. If the dealer achieves the turnover target, company provide certain incentives like, salary reimbursment of some of the employees, advertisment cost etc. .....

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..... Is the company liable to deduct tax on these incentive given to dealers. Reply By Rama Krishana: The Reply: If it is in the nature of brokerage or commission, obviously yes, you need to deduct TDS o .....

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..... n such payment. But, if it is in the nature of discount, no TDS is required to be deducted. In my view, where the dealers are acting as independent distributor / seller and the company is selling prod .....

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..... uct to them, the nature of incentives, reimbursements of some expenses would be in the nature of Discount only.
Discussion Forum - Knowledge Sharing .....

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