Tds

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2016 A Co. Pays Rs. 35000/- against an advertisement published in a souvenirs issued by a Government School on the occasion of its Platinum Jublie. Whehter the transaction attracts Section 194 C

Please Suggest ?

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2016 Please suggest the answer

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

27 July 2025 Here’s a clear take on your query about TDS under Section 194C for advertisement payment to a Government School:

---

### Facts:

* Payment of Rs. 35,000 for advertisement published in a souvenir issued by a Government School.
* Need to know if TDS under **Section 194C** (payments to contractors) applies.

---

### Analysis:

* **Section 194C** applies to payments for **contractual work** — like transporting goods, manufacturing, building, or carrying out any work contract.
* **Advertisement payments** are generally covered under **Section 194J** (fees for professional or technical services) or **Section 194C** only if it relates to a contract for carrying out work.
* Payment for publishing an advertisement in a souvenir issued by a school is **not a work contract**; it is a payment for **advertisement services**.

---

### What about the Government School?

* The school is a government entity; payments made to government or government-controlled bodies for certain activities may be **exempt** or **non-taxable** under TDS provisions.
* Also, educational institutions are generally **exempt from income tax** under Section 10(23), but TDS applicability depends on the nature of payment.

---

### Conclusion:

* **Section 194C does NOT apply** to advertisement payment.
* The payment is more likely covered under **Section 194J** as **fees for professional or technical services** or under **Section 194C** if it’s considered a contract for work, but in this case, advertisement is not a work contract.
* However, since this is a government school (educational institution), payments for such purposes may **not attract TDS**.
* Confirm if the school has a TAN or is exempt under section 196; if exempt, no TDS is required.

---

### Suggestion:

* Normally, no TDS under Section 194C.
* If any TDS, consider Section 194J — but verify if exemption applies.
* Best to consult specific circulars or seek a certificate of exemption from the school.

---

If you want, I can help you draft a formal note or find exact circular references for exemption in such cases!

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now