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Tda on sponsership

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Querist : Anonymous (Querist)
26 June 2015 under which section TDS will deduct on sponsorship?

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26 June 2015 Circular No. 5/2002, dated 30-07-2002
Ques. 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.


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