TaxTMI 
TaxTMI 
TDS on incentives
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....DS on incentives<br> Query (Issue) Started By: - KRISHNAMURTHY S P Dated:- 16-9-2009 Last Reply Date:- 18-9-2009 Income Tax<br>Got 1 Reply<br>Income Tax<br>Company having dealers all over india, supp....
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....ly 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 on....
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.... 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 produ....
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....ct to them, the nature of incentives, reimbursements of some expenses would be in the nature of Discount only.<br> Discussion Forum - Knowledge Sharing ....