Quick Summary
Google Ads is one of the most widely used digital advertising platforms for businesses in India. It allows advertisers to promote products and services through Google Search, YouTube, Gmail, and the Google Display Network. However, many advertisers are unaware that TDS (Tax Deducted at Source) appl
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Yes, according to Section 194C of the Income Tax Act, 1961, TDS must be deducted on advertising payments. A 2% TDS rate applies to the invoice amount, excluding GST, if a single invoice exceeds ₹30,000 or total payments exceed ₹1,00,000 in a financial year.
Google Ads automatically charges the full invoice value, including GST. Since TDS cannot be deducted directly from this payment, advertisers are required to deposit the 2% TDS amount separately with the government from their own funds.
To claim the TDS refund, you must first deposit the TDS amount with the Income Tax Department, file your TDS return, generate Form 16A from the TRACES portal, and then submit Form 16A, Google Ads invoices, and other required documents to Google via email or their help center.
The essential documents required are Form 16A (TDS Certificate), Google Ads invoices, your Google Ads Billing Account Number, and an invoice and TDS summary in an Excel sheet. A cancelled cheque copy may also be requested.
After submitting the required documents, Google will send an acknowledgement email. The TDS reimbursement is typically issued as Google Ads credits within 5 to 15 working days.
The quarterly submission deadlines are July 30 (for Q1), October 30 (for Q2), January 30 (for Q3), and May 15 (for Q4). TDS certificates for the previous financial year must be submitted before May 31.
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