• The provider of any benefit or perquisite given to a dealer, supplier, influencers or similar partners resulting from a business or professional relationship
• Aggregate value or the benefit exceeds ₹ 20,000 in the financial year
• The Provider to deduct tax at the rate of 10 percent before providing such benefit or perquisite
• The aggregate annual threshold of ₹ 20,000 is to be considered for the entire FY 2022-23 with effect from April 1
• However, TDS liability will trigger only on the benefit or perquisite provided on or after July 1, 2021
• Higher rate of 20% TDS applicable for dealers who do not have PAN or have filed their Tax returns
• TDS shall apply to all modes of providing benefit or perquisite, whether in cash or kind or partially in cash and kind
• It has been clarified that tax shall be deducted in the name of the dealer irrespective of the utilisation of such benefit/perquisite
• This would result in TDS credit and corresponding income as per Form 26AS in the name of the dealer
• Business conferences organised with the prime object of educating dealers/customers about new products, sales techniques and other similar business-related objectives have been excluded from the purview of TDS liability subject to certain conditions
• However, expenses on prior stays or overstay beyond the dates of business conferences continue to attract perquisite TDS (At fair value)
• Certain exemptions apply in case of samples that are returned etc

* Applicable where provider turnover is more than ₹ 50 L in the case of companies

• Our reporting Suite keeps a record of all load and redeem transactions by recipient.
• Generated on a monthly basis with a clear view of TDS liability by recipient.