This book provides a comprehensive analysis on the following:
Deduction of TDS under section 194-R on Benefits or Perquisites arising from business or profession
Taxability of such benefits or perquisites under section 28(iv) of the Income-tax Act
It covers a unique compliance-oriented & legal approach, along with the following:
Illustrative Case Studies on Deduction of TDS under various scenarios
Frequently Asked Questions (FAQs) on Key Concepts
Alphabetical Reckoner on Benefits/Perquisites
The Present Publication is the 2nd Edition and has been amended by the Finance Act 2023. This book is authored by CA Srinivasan Anand G., with the following noteworthy features:
[Reckoner to CBDT’s Circular] which includes the clarifications & issues arising from the Circular, is given at the start of the book
[Applicability of TDS u/s 194R] discussed via various case studies & FAQs
[Threadbare Analysis of CBDT’s Circulars] which includes the following:
What are the requirements of the Circular?
What are the matters clarified by the Circular?
What are the issues arising out of the Circular and the possible solutions
What are the grounds on which the Circular can be challenged?
[Discussion on Controversial Issues] which includes:
TDS on Free Maintenance Provided to Buyer
TDS on Compensation Paid as Product/Equipment did not Perform to Standards
TDS on CSR or Donations
Waiver of Interest on Late Payments
Write Off of Bad Debts
[Complex Legal Positions are Simplified via Flow Charts] are included
[Discussion Supported by Case Laws]
The structure of the book is as follows:
Chapter 1 analyses section 194R, the rationale for enacting it and outlines its salient features
Chapter 2 discusses who is liable to deduct TDS under section 194R, i.e., who is the provider of benefit or liability?
Chapter 3 discusses what conditions should deductee (resident recipient) satisfy so that the liability of the provider of benefit or perquisite to deduct TDS u/s 194R is triggered
Chapter 4 discusses the nature of/the condition to be satisfied by benefit or perquisite so that liability to deduct TDS u/s 194R is triggered
This chapter is discussed in light of case laws
Chapter 5 discusses the nature of the obligation cast on the provider of benefit/perquisite and how to comply?
Chapter 6 discusses the removal of difficulty (ROD) clause [Section 194R(2)] and on what grounds the ROD clause itself and Circular 12/2022 issued by CBDT under the ROD clause can be challenged in Courts
Chapters 7 to 34 discuss the deductibility of TDS under Section 194R as well as taxability under section 28(iv) in various situations in the light of CBDT’s Circulars and relevant case law under section 28(iv)
Chapter 35 discusses FAQs
Chapter 36 discusses avenues for litigation that have arisen due to the Circular
Chapter 37 discusses amendments made to Income-Tax Rules consequent to section 194R
Chapter 38 discusses the applicability of penalty and prosecution for default in deducting TDS u/s 194R