Checklist for 194R

 

No	Particulars	Questions for the sales promotion and business team
1	Benefit to vendors / contractors/ customers	Is there any benefit / perquisite provided by your company to any vendor / contractor / customer / any other person in the course of business (other than employees where tax is already withheld under Section 192). For example: Providing free products / dinners / vouchers to any distributor or contractor.  Providing free meals / benefits to employees or workers of contractor, etc.                            **Kindly note that benefit either in cash or kind should be mentioned above. Whether any expenses on food and venue are incurred during customer meetings, etc. Whether goods / items are given free of cost under luck draw? Whether the system of luck draw is manual or automated? Whether any marketing support is provided to distributors / dealers?
2	Cash and sales discounts	Does your company, in the course of business, provide any cash discounts, sales discounts, benefits or perquisites to its customers? If answer to the above is yes, what are the kind of benefits provided? Benefit can include anything and everything such as given free tickets to an events, free goods such as mobile phone, gold coin, cash discount, etc.
3	Out of pocket expenses	Do you charge OPEs to your customers? If yes whether any withholding done by customers? Whether your vendors charge you OPEs?
4	Conferences/ Seminars	Do you organize any conferences for its contractors / vendors / any other party? If yes, please provide nature of these conferences and benefits provided attendees.
5	ESOPs	Whether ESOPs are given to your employees by your Parent company without any cross charge?
6	Employee expenses	Whether your employees or directors take vendors / clients out for dinner / any other entertainment? If yes, what is the value of cost incurred? Do your employees receive any benefit or perquisite from a third party?
7	Director’s expenses	Whether membership fee for various clubs/institutes is borne by the Company? Are directors taken on business trips or personal trips in India or outside India?
8	Debt related matters	Are you providing or availing an interest free loan / corporate guarantees / moratorium? Any restructuring proposed – write off of loan or discounts being provided by Banks?
9	Corporate Social Responsibility	Are you subject to CSR provisions? If yes, are your providing goods/services for free? Whether CSR activities can be considered as providing benefit or perquisite under Section 194R?
10	Intra-group transactions	Whether any type of benefit is received by Indian entity from its group holding company? Such as use of brand, internal SAP systems without any consideration. Whether there is use of common office space without any cross-charge?
11	Additional services	Whether free services are provided along with the regular services? For e.g. free installation services is provided along with sale of goods. Whether free training is provided to the customers on purchase of software or goods?