Section 194R TDS – Dissecting CBDT Circular

Episode Duration:
90 minutes

Episode Background:
A recurrent phenomenon over the last few Budgets is the introduction of new TDS provisions and this year is no exception. With effect from July, 2022, section 194R of the Income-tax Act, 1961 (‘Act’) mandates an assessee to deduct tax at source on perquisites and benefits made available by them to persons carrying on any business or profession.

Pertinently, Section 194R is silent on certain crucial aspects such as the meaning of ‘benefit or perquisite’ and the manner in which they are to be valued. In this context, CBDT has recently issued guidelines for removing difficulty in giving effect to the provisions. These guidelines seem to widen the scope and applicability of the provisions considerably based on its understanding of the term ‘benefit or perquisite’, treatment of cash incentives, reimbursement, valuation, etc.

What shall the episode cover?
Against this backdrop, Taxsutra along with its knowledge partner, Lakshmikumaran & Sridharan Attorneys, has organized an episode on the theme of “TDS on Perquisites u/s 194R – Dissecting CBDT Circular and Practical Challenges.” In this episode, Mr S. Vasudevan & Mr S. Sriram [Partners, Lakshmikumaran and Sridharan Attorneys] along with their team have deep-dived into the nuances of Section 194R of the Act and the guidelines issued by CBDT. 
 
Key Highlights

The episode has covered:

a. The background on the introduction of Section 194R
b. Guidelines issued by CBDT
c. Whether guidelines are binding on taxpayers?
d. Practical issues in the implementation of the Section