Tds
This query is : Resolved
Gopal Joshi
(Querist)
06 February 2014
Is TDS applicable on payment for sound system? If yes under which section?
Nikhil Kaushik
(Expert)
07 February 2014
if it is for rental, then yes, it is under 194-I
Gopal Joshi
(Querist)
07 February 2014
Example - we pay him for a sound system in a company's function.
Nikhil Kaushik
(Expert)
07 February 2014
ya...covered under 194-I. but given that under 194-I, no TDS is applicable if annual payment to such deductee is less than Rs 1.8 lakhs.
Message likes :
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Gopal Joshi
(Querist)
10 February 2014
CENVAT credit is available only and only on tax invoice. Am I correct???
-----------------------------------
Please ans one more qstn. Is this entry correct.... ( A most famous school gives a add in news paper & channels)
1) On the time of 100% advance on proforma invoice (which includes Service Tax amount also)
Adv. Agency a/c Dr. (Including ST)
To 2% TDS (u/s 194 C)
To Bank
-----------------------------------
2) Journal entry when Tax Invoice will receive
Adv. Exp. a/c Dr.
Service Tax a/c Dr.
To Adv. Agency
------------------------------------
-----------------------------------
Please ans one more qstn. Is this entry correct.... ( A most famous school gives a add in news paper & channels)
1) On the time of 100% advance on proforma invoice (which includes Service Tax amount also)
Adv. Agency a/c Dr. (Including ST)
To 2% TDS (u/s 194 C)
To Bank
-----------------------------------
2) Journal entry when Tax Invoice will receive
Adv. Exp. a/c Dr.
Service Tax a/c Dr.
To Adv. Agency
------------------------------------
Gopal Joshi
(Querist)
17 April 2014
Is TDS applicable if we order to a printing press for print some brochures, pamphlets etc as per our specification and they charge VAT on whole amount?
Please ans asap
Please ans asap
27 July 2025
Here's a clear breakdown of your queries:
---
### 1. **TDS on Sound System Payment**
* **If the payment is for renting the sound system (hiring charges), TDS is applicable under Section 194-I (Rent).**
* **Threshold:** No TDS if annual payment to the same party is less than Rs. 1.8 lakhs.
* **If payment is for purchase of sound system (not rent), TDS under 194C (Contract) may apply if it qualifies as a work contract or supply contract.**
---
### 2. **CENVAT Credit and Entries on Advertisement Advance**
* **Yes, CENVAT credit is available only on tax invoices issued by the service provider.**
* Your suggested entries:
**On payment of 100% advance including Service Tax:**
```
Adv. Agency A/c Dr. (Including ST)
To TDS Payable A/c (2% under 194C)
To Bank A/c
```
**When Tax Invoice is received:**
```
Adv. Expense A/c Dr. (Excluding ST)
Service Tax A/c Dr.
To Adv. Agency A/c
```
* These are **correct in principle**, but make sure to separate service tax from advance payment for proper credit.
---
### 3. **TDS on Printing Press Charges with VAT**
* **TDS is applicable on printing charges under Section 194C (Contract).**
* **VAT is a pass-through tax and no TDS is deducted on VAT.**
* TDS should be deducted **only on the net amount excluding VAT**.
---
If you want, I can help you draft the exact accounting entries or clarify any other points!
---
### 1. **TDS on Sound System Payment**
* **If the payment is for renting the sound system (hiring charges), TDS is applicable under Section 194-I (Rent).**
* **Threshold:** No TDS if annual payment to the same party is less than Rs. 1.8 lakhs.
* **If payment is for purchase of sound system (not rent), TDS under 194C (Contract) may apply if it qualifies as a work contract or supply contract.**
---
### 2. **CENVAT Credit and Entries on Advertisement Advance**
* **Yes, CENVAT credit is available only on tax invoices issued by the service provider.**
* Your suggested entries:
**On payment of 100% advance including Service Tax:**
```
Adv. Agency A/c Dr. (Including ST)
To TDS Payable A/c (2% under 194C)
To Bank A/c
```
**When Tax Invoice is received:**
```
Adv. Expense A/c Dr. (Excluding ST)
Service Tax A/c Dr.
To Adv. Agency A/c
```
* These are **correct in principle**, but make sure to separate service tax from advance payment for proper credit.
---
### 3. **TDS on Printing Press Charges with VAT**
* **TDS is applicable on printing charges under Section 194C (Contract).**
* **VAT is a pass-through tax and no TDS is deducted on VAT.**
* TDS should be deducted **only on the net amount excluding VAT**.
---
If you want, I can help you draft the exact accounting entries or clarify any other points!
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