India: Guidance regarding withholding on benefits arising from recipient’s business or profession

Guidance regarding the implementation of provisions of section 194R

Arising from recipient’s business or profession

The Central Board of Direct Taxes (CBDT) issued guidance regarding the implementation of provisions of section 194R—requiring withholding of a 10% tax on the value of certain benefits provided to resident recipients—that were amended by the Finance Act, 2022.

The Finance Act, 2022 expanded the scope of transactions requiring tax withholding to benefits arising from a recipient’s business or exercise of a profession.

Read a September 2022 report [PDF 386 KB] prepared by the KPMG member firm in India


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