CBDT Circular on Applicability of TDS U/s 194R on dealers conference, OTS By bank, reimbursement of Expenses, allowability of depreciation on the gifted Car etc.
CBDT issues Circular No.18/2022 dt.Sep 13, 2022 to remove difficulties on implementation of TDS on benefits or perquisites under Section 194R. It has clarified that the Circular is only for removal of difficulties in interpretation of provisions of Section 194R and does not impact the taxability of income in the hands of the recipient;
The circular covers the following issue & provide the required guidance:
(i) one-time loan settlement/ waiver of loan,
(ii) reimbursement of expenses incurred by a ‘Pure Agent’,
(iii) interplay of 194R and other TDS provisions,
(iv) expenditure incurred on dealers’ conference,
(v) availability of depreciation on car gifted to dealer,
(vi) liability to deduct by Embassy or High Commissions and
(vii) liability on issuance of bonus/right shares.
The copy of the Circular is as under:
