Tds rate applicable to event management compnay

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2015 1. We have to make a payment to Event Management Company which is Proprietorship Firm, what will be the rate of tds to be deducted ?

2. If TDS is to deducted u/s 194C under which accounting Head can the expense be claimed and if TDS is to deducted u/s 194J under which accounting Head can the expense be claimed. Pls provide accounting Head expense for both

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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03 November 2015 U/s 194C TDS @1%, head TDS Payable Account (CREDIT), to pay via TDS-OTHER Head

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2015 Under which head the expense has to be booked

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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03 November 2015 TDS is not an expense

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2015 not TDS, the amount paid to Event Management Company will go under which expense head

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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03 November 2015 It entirely depends upon the nature of activity whether brand promotional or purely a marketing event; broadly this is treated as marketing expense in accounting paralance.