Section 194R of the Income Tax, 1961 | TDS on Benefits and Perks
It is commonplace for business entities to incentivize their stakeholders and partners such as dealers, distributors, or agents through different monetary and non-monetary ‘benefits or perquisites’. Discounts, gifts, free samples, sponsored travel packages etc. are some of the common illustrations of benefits and perquisites extended.
Date & Time
26
Jul 2022 | 7:30 AM - 10:00 AM
Venue
Varahari Hall, Ramada Plaza Chennai, No 36 Sardar Patel Road, Guindy, Chennai -600032
Historically, these kinds of incentives have been taxable under the Income Tax Act, 1961. With effect from July 1st 2022, a new obligation has been introduced in the form of Section 194R which would require any person providing a benefit or perquisite to deduct tax at source @ 10% of the value or aggregate value of such benefit or perquisite.
Implementation of this new obligation could prove to be a challenge for the industry from a compliance perspective especially considering the various kinds of benefits and perks extended on a day-to-day basis by businesses. It is also pertinent to note that non-compliance of this provision has serious consequences ranging from non-allowability of expenditure as a deduction to levy of penalties.
The seminar will vivisect the newly introduced Section 194R and discuss its scope, implications and other consequences. It will focus on specific issues, such as:
- Meaning of ‘benefit or perquisite’
- The various kinds of ‘benefits or perquisites’ intended to be covered by the new Section 194R
- Manner of determining the value of benefits or perquisites extended
- Practical challenges in application of Section 194R
- Consequences of non-compliance
- Implications under the GST Act for benefits or perquisites
Schedule:
Breakfast and Registration - 7:30 am – 8:30 am
Session- 8:30 am – 10:00 am
Speakers:
- Raghavan Ramabadran - Executive Partner, L&S, Chennai
- Rahul Jain – Director, L&S, Chennai
- Bharathi Krishnaprasad - Joint Director, L&S, Chennai
