the facts of the case n case of benefit or perquisite being a product like car mobile outfit cosmetics etc and if the product is returned to the manufacturing company after using for the purpose of rendering service then it will not be treated as a benefitperquisite for the purposes of section 194r of the act however if the product is retained then it will be in the nature of benefitperquisite and tax is required to be deducted accordingly under section 194r of the act cbdt explainedthis new provision will ensure that those individuals who are getting benefits from such sales provision expenditure by different businesses report it in their tax returns and pay their tax on all those benefits which are worth and not retained back this will in turn save these businesses from opening up a lot of practical issues with their return for which they have not braced themselves with said moiz rafique managing partner privy legal service llpwhat about freebies to doctorsif doctors receive free samples of medicines while being employed at a hospital the new tax provision would apply on distribution of free samples to the hospital if a free medicine sample is provided by a company to a doctor who is an employee of the hospital the tds willbe deducted by the company as the benefitperquisite is provided to the doctor on account of him being the employee of the hospital notably the cbdt has also clarified that the regulations will be applicable to free samples provided by companies to doctors working in the hospitals at first the tax liability will be on the hospital however the same will shift to the doctor employee since the hospital will be at liberty to tax the perquisite to the employee and deduct tax accordingly therefore the ultimate effect will be seen in the tax liability that is upon the employee and not the hospital since the hospital will be at liberty to claim credit of tax deducted whilst furnishing the tax returns explained suvigya awasthy associate partner psl advocates solicitorsso what do these new rules really meaninfluencers will now think twice before accepting a company perk like a free cosmetic product or a foreign trip abroad while medical doctors would think twice before accepting free medical samples and distribute them in a hospital as for reimbursements taken on expenses incurred while carrying out a business these will be treated as benefits depending on whose name the invoice is issued in for example if a professional spends on travel expenses out of his pocket for company a and the invoice is generated in the professionals name the reimbursement that he gets from the company will be treated as a benefit and subjected to 10 tds however if the invoice is generated in companys name tds would not apply the provision is a pivotal addition to the income tax act guaranteeing that benefits received by those engaged in sales promotions advertising of products and brands report