15 March 2010
Our company enters in to an agreement with a production agency to produce a 30 minute advertisement film. The production agency consists panel of film technicians, art directors, commentator, camera men etc. The payment towards this production agency is subject to TDS. My doubt is what will be the rate of TDS applicable. Is it TDS rate under section 194J (fee for technical service) or 194C (contract)?
15 March 2010
1st of all thanks for the quick reply. The end result of the agreement is that, the production agency has to give us the 30 minute film about our company in a video format..... so whether this amounts to a professional service?
It would be 1 % if contractor is advertiser, if the contractor is production house then 2 % and if the agent is neither advertiser nor production house and simply mediator then also 2 % as there must be some technical work to be done by the contractor to attract Sec. 194 J. Cheers,
CAclubindia
