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TDS on exhibition space rent

Chartered Accountant


What is the TDS rate applicable for payment towards 'Exhibition Stall Space rent charges'?

Whether it will comer under category -'Rent' or 'Advertisement' or 'Contract' payment ?

Please suggest.

 
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Hi, As per the circular no. 715 dt 8/8/95 Contract for putting up a hoarding is in the nature of advertising contract annd provision of section 194C would become applicable, however it may further be notified that if a particular person has taken a particular space on Rent and thereafter sublets the same fully or in part for putting up a hording, he would be liable to TDS under section 194I and not section 194C. In your case, which it understand is that usually exibition are held on a let out property, if it is so Section 194I would apply. As far rate is concerned it wil depend upon the Type of assessee.

 
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Chartered Accountant


I agree , section 194I will apply. This is clear from definition of rent as per section 194I , which is as follows: [(i) “rent” means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,— (a) land; or (b) building (including factory building); or (c) land appurtenant to a building (including factory building); or (d) machinery; or (e) plant; or (f) equipment; or (g) furniture; or (h) fittings, whether or not any or all of the above are owned by the payee;]

 
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(Guest)

it will come under advertisement

 
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Whether centering material taken on hire basis ( rent) then whether tds is applicable under section 194 i ?

 
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Chartered Accountant


I agree with Mr. Sampat. TDS u/s 194I (Rent) shall apply for payment of exhibition.

 

 

 
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(Guest)

Tds on Exhibution   Rent %

 
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Well according to me it falls under advertising contract .

Please Refer circular no. 715 dt 8/8/95 of CBDT

" Question 18 : Whether deduction of tax is required to be made under section 194C for sponsorship of debates, seminars and other functions held in colleges, schools and associations with a view to earn publicity through display of banners, etc., put up by the organisers ?

Answer : The agreement of sponsorship is, in essence, an agreement for carrying out a work of advertisement. Therefore, provisions of section 194C shall apply "

 And the intention of the event is not let-out or sub-let the property, it is just providing a platform for advertisement so it should fall under 194 C

 
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Dear Sir/Madam,

Which TDS section apply for  Exhibition Stall Booking ?

 

 
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