Case Law Details
Case Name : ITC Ltd Vs CIT (Delhi High Court)
Related Assessment Year :
Courts :
All High Courts Delhi High Court
Become a Premium member to Download.
If you are already a Premium member, Login here to access.
Sponsored
Recently in the case of ITC Ltd Vs. CIT [2011-TIOL-287-HC-DEL-IT], the Delhi High Court (HC) held that the tips or service charges distributed to employees are to be treated as part of salary and tax is required to be withheld under section 192 of the Income-tax Act (the Act) from the same. The AO treated the value of these tips as ‘salary’ and held that the assessees were liable to withheld tax at source from such payments under section 192 of the Act.
Facts – The ITC Ltd. a
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Sponsored
Kindly Refer to
Privacy Policy &
Complete Terms of Use and Disclaimer.
Hi,
Didnt understand much. Service charge which is added to the bill compulsorily by the employer and later given to the employees is taxable( got this right) . but are the tips given voulantarily by customers to the staff taxable?? Like they pay the whole bill by credit card and write some tips on the slips which the employer distributes later.
Thanks.
It is a sad commentary with CBTD to lay hands on these tips. In Hindi it is known as
BAKSHEEJ; can it be taxed and questions arises is the effort worth trying unless there are other ramifications. The authorities have slept over millions of crores black money over decades and these sorry state of affairs are created by politicians and officials.