TaxTMI 
TaxTMI 
Tax on winning prizes
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....ax on winning prizes<br> Query (Issue) Started By: - SPIC Ltd. Dated:- 5-1-2012 Last Reply Date:- 6-1-2012 Income Tax<br>Got 1 Reply<br>Income Tax<br>Dear Sir Wish you a blessed and prosperous New Ye....
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....ar 2012! I recently won a bike (TVS Wego) in a lucky draw contest. The OTR price of the bike is Rs.56945/- and the ex-showroom price is Rs.48903/- which includes a VAT of Rs.6318/-. When I went to t....
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....he showroom to collect my prize, the dealer told me that I have to remit 30% tax on the ex show room price of the bike. The dealer also told me that apart from paying this 30% on Rs. 48903/-, I should....
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.... also bear the VAT, registration & insurance charges and other taxes like road tax etc. Considering all this, my overall liability comes to around Rs.23000/-. I am quite doubtful whether the dealer is....
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.... giving me the right information regarding the payment. I request you to kindly clarify whether I am liable to make the above payments as required by the dealer. Thanking you Regards Eva Dhurairaj....
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.... Reply By Ritesh Pandya: The Reply: Dear Dhurairaj, TDS on Winning Prizes deducted / collected and deposited TDS in Govt. Accounv become a Sponsor. and u r responsible to pay tax 30%. And Confirma....
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....tion of payment of tax from sponsor no need to require by prizer winner. Txs.<br> Discussion Forum - Knowledge Sharing ....