Tds

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mohd arbaz khan

mohd arbaz khan (Querist)
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22 November 2013 Respected Sir/Madam,

why is tds on sponsorship taken u/s194j and not u/s 194c.
please reply urgently.

Pramod Kumar Sinha

Pramod Kumar Sinha (Expert)
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22 November 2013 I am of opinion that sponsorship does not fall in the category of contractual works. Hence, TDS on sponsorship is taken u/s 194J.

mohd arbaz khan

mohd arbaz khan (Querist)
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22 November 2013 yes Siri have read both the sections and both the sections covers the term "advertisement", so i got confused.
Sir would you please throw some light on the matter.

thank you !

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 November 2013 i beg to differ. kindly refer Circular 715 dated 8 August 1995. Sponsorship shall be in essence advertisement and shall be covered under 194C.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 November 2013 you may refer: https://incometaxindiapr.gov.in/incometaxindiacr/contents/CBDTFiles/Circulars/CBDTLaws/HTMLFiles/sec194c_715_95.htm

mohd arbaz khan

mohd arbaz khan (Querist)
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22 November 2013 sir is there any ammendment made after 1995, because the rates in the attachment are old rates of tds

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 November 2013 the rates may be old but not the principal. so why worry.

mohd arbaz khan

mohd arbaz khan (Querist)
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22 November 2013 tahnks a lot Sir,
now i got the point.

thank you once again.
i hope that you solve my future querries also.