As a part of normal industry practice and to promote business, Sumanyu offers various promotions from time to time. These promotions are directly related to business/ sales volumes and include gifts, domestic & foreign travels. Subsequent to the introduction of a newSection 194R by Finance Act 2022 in Income Tax Act, 1961 with effect from01.07. 2022 which provides an obligation on the person responsible for providing any benefit or perquisite to a resident, to deduct tax at source @ 10%, whether the benefit or perquisite is in cashor in kind, Sumanyu’s updated policy has two objectives. Firstly, to ensure compliance withSection 194R of the Income Tax Act 1961. Secondly, to ensure that our qualified DSAs can receive eligible gifts, undertake domestic and foreign travel or avail cash in lieu of promotion qualification in time. This policy would be applicable to all the promotions launched during the current financial year and thereafter. The salient features are:
1. The DSAs must avail gift, travel or cash in lieu within Six months of the closure of the promotion period. If travel is not availed, the company will deduct 10% TDS and credit the balance 90% to the DSA’s bank account.
2. The list of qualified DSAs would be available on the company website as well as on the individual DSA’s home page.
3. Transfer of benefit would not be allowed (except in case of blood relation, proof to be provided by the qualifier)
4. Consent of the DSA for gift, travel or cash in lieu would be taken and calling data would be maintained in software.
5. DSA opting for gift shall get their qualified gift dispatched to their address available with the company. Those opting for travel must submit a passport and any other document within the specified time.
6. DSA opting for gift or travel must deposit an amount equivalent to 10% of the gift/trip cost towards TDS obligation under Section 194R of the Income Tax Act 1961 in the designated bank account. TDS collected from the DSAs shall be deposited by the company with the tax authority. The company shall file the TDS return and the individual person could check the credit of TDS in his/her 26AS or Tax information Report on their login with the income Tax Authority
7. To ensure an economical travel package, travel shall be undertaken only if the minimum number of PAX is 50 (fifty). If the number is less than 50, no tour shall be organized andthe company will deduct 10% as TDS and transfer the balance amount to the DSA’s bank account.
8. The Cost of the trip would be finalized on trip to trip basis and according to the costing for actual travel plus applicable admin expenses.
9. In case of a VISA refusal, the company will refund the trip amount plus the TDS amount deposited by the DSA.
10. In case of “NO SHOW” i.e inability of a DSA to travel after the bookings have been done, it would be assumed that the person has travelled and no further benefit would be available to the concerned DSA.
11. All qualifications against a particular promotion shall be closed within six months from the date of closing of the Promotion.