In social situations, as well as business situations, there is an amount of flattery that goes around. Flattery (giving compliments) is making positive comments on a persons appearance, preference, accomplishments or other personal reference. Flattery can sometimes be mistaken for flirting or being a kiss-ass.
When making flattery, be aware of the cultural norms. Making flattery to some people in certain countries can be very offensive, while in other countries it may be perfectly acceptable.
When making flattery, don't say something that can be easily misconstrued. For example, you should avoid saying to a woman, "That skirt and blouse really shows your body shape." Or to an Indian, "Your turban is so colorful."
If you feel the need to compliment on someone's appearance, it should not be taken in the wrong way. Instead, you could say, "That is a nice bag, where can I get one?" or "I love your jacket, it goes well with your suit."
But note, that making any references to the opposite sex could be considered impolite.
A safer way to flatter someone is to make comments on their accomplishment. Saying, "That was a great speech," or "Your presentation was helpful," are great examples on how to flatter someone.