Section 194R of the Income Tax Act mandates TDS on any benefit or perquisite provided to a resident in the course of business or profession. Last week, the Forum submitted a representation to CBDT detailing the industry’s numerous concerns and requests for clarification regarding the applicability of these provisions, especially in view of the clarificatory Circular No. 12, 2022 dated June 16, 2022, which resulted in further practical and legal ambiguities.
In continuation of our ongoing advocacy efforts, we hosted a virtual interactive session with concerned officials at CBDT to present the industry’s perspective and seek necessary clarifications. The session was chaired by Tax Planning and Legislation unit’s Joint Secretary and over 20 Tax heads joined the discussion.