Tds
This query is : Resolved
07 December 2012
My party has paid Advertisement charges to a Trust exceeding Rs.30,000/- which is exempt under IT Act,do my party needs to deduct TDS on such charges?
07 December 2012
Hi
Yes TDS to be deducted.
Thanks//Vaibhav
Yes TDS to be deducted.
Thanks//Vaibhav
Message likes :
1 times
10 December 2012
But the Trust is exempted from Income Tax then also,if yes then by filing Form 15 G,my party can be exempted from deducting TDS??
27 July 2025
Good question! Here's the detailed clarification:
---
## Scenario:
* Your party paid **advertisement charges** exceeding ₹30,000 to a **Trust**.
* The Trust is **exempt from Income Tax** under the IT Act.
* You want to know if **TDS is still required** and whether **Form 15G** can be filed to avoid TDS.
---
## ✅ Is TDS deductible on Advertisement Charges paid to an Exempt Trust?
* **Section 194C** (for contract payments) or **Section 194J** (for professional/technical services) may apply depending on the nature of payment.
* **Advertisement charges** generally fall under **Section 194C** or **Section 194J** or **Section 194E** depending on nature.
* The key point is:
**TDS has to be deducted even if the payee is exempt under Income Tax Act** unless a specific exemption is provided under the Act.
---
## ✅ Exemptions for Trusts:
* Trusts registered under **Section 12A or 12AA** of Income Tax Act get exemption on their income.
* But this **exemption does NOT mean no TDS is to be deducted** on payments made to them.
* Unless a specific exemption notification exists, TDS provisions still apply.
---
## ✅ Can Form 15G be filed to avoid TDS?
* **Form 15G** is a **declaration for non-deduction of TDS** applicable only for **individuals and HUFs** under certain income limits.
* **Trusts and other entities cannot file Form 15G**.
* Hence, **Form 15G cannot be used by a Trust to avoid TDS deduction.**
---
## ✅ Summary:
| Situation | TDS Deduction Required? | Can Form 15G be filed? |
| ---------------------------------------------- | ----------------------- | --------------------------- |
| Advertisement charges to Trust exempt under IT | Yes, TDS is deductible | No, Form 15G not applicable |
---
## ✅ What should your party do?
* Deduct TDS on advertisement charges paid to the Trust as per applicable section.
* The Trust can claim exemption/refund of TDS while filing its Income Tax Return.
* Request the Trust for their **Exemption Certificate** (Section 80G or 12A/12AA) for records.
---
If you want, I can help you with the exact TDS section applicable on advertisement charges or draft a communication for your party to the Trust regarding TDS compliance.
Would you like that?
---
## Scenario:
* Your party paid **advertisement charges** exceeding ₹30,000 to a **Trust**.
* The Trust is **exempt from Income Tax** under the IT Act.
* You want to know if **TDS is still required** and whether **Form 15G** can be filed to avoid TDS.
---
## ✅ Is TDS deductible on Advertisement Charges paid to an Exempt Trust?
* **Section 194C** (for contract payments) or **Section 194J** (for professional/technical services) may apply depending on the nature of payment.
* **Advertisement charges** generally fall under **Section 194C** or **Section 194J** or **Section 194E** depending on nature.
* The key point is:
**TDS has to be deducted even if the payee is exempt under Income Tax Act** unless a specific exemption is provided under the Act.
---
## ✅ Exemptions for Trusts:
* Trusts registered under **Section 12A or 12AA** of Income Tax Act get exemption on their income.
* But this **exemption does NOT mean no TDS is to be deducted** on payments made to them.
* Unless a specific exemption notification exists, TDS provisions still apply.
---
## ✅ Can Form 15G be filed to avoid TDS?
* **Form 15G** is a **declaration for non-deduction of TDS** applicable only for **individuals and HUFs** under certain income limits.
* **Trusts and other entities cannot file Form 15G**.
* Hence, **Form 15G cannot be used by a Trust to avoid TDS deduction.**
---
## ✅ Summary:
| Situation | TDS Deduction Required? | Can Form 15G be filed? |
| ---------------------------------------------- | ----------------------- | --------------------------- |
| Advertisement charges to Trust exempt under IT | Yes, TDS is deductible | No, Form 15G not applicable |
---
## ✅ What should your party do?
* Deduct TDS on advertisement charges paid to the Trust as per applicable section.
* The Trust can claim exemption/refund of TDS while filing its Income Tax Return.
* Request the Trust for their **Exemption Certificate** (Section 80G or 12A/12AA) for records.
---
If you want, I can help you with the exact TDS section applicable on advertisement charges or draft a communication for your party to the Trust regarding TDS compliance.
Would you like that?
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