20 April 2012
ADVERTISEMENT ON FACEBOOK , TDS WILL BE DEDUCTED ?? IF YES HOW?? EVERYTHING IS DONE ONLINE.. PAYMENT IS MADE THROUGH CORPORATE CREDIT CARD.
PRACTICALLY NOT POSSIBLE TO DEDUCT TDS>> KINDLY CLARIFY
20 April 2012
U need to remit less amount online and by deducting TDS on such payment. First of all see applicability of TDS since u have not mentioned the amount.
20 April 2012
facebook ofc is based in ireland so billing in dollars and payment by credit card when card statement comes , amt wih rate is shown and converted in indian rupee. and the same is entered in books of accounts
20 April 2012
Based on the information given by u and to the extent of my knowledge, it is a foreign payment and u have to deduct TDS. If u have not deducted TDS, then gross it up and u should bear the cost.
20 April 2012
Assume that u have paid Rs. 1,250 as to FB. Assuming TDS rate is 10% as per Sec 195 (it depends on country to country and as per DTAA with that country). Then the amount paid by u will be treated as 90%. If 90% = Rs. 1,250 100% = Rs. 1,250/.9 = 1,388. Then the entry will be as below. Advertisment Cost A/c Dr 1,388 To FB A/c 1,250 To TDS Payable A/c 138 I would like to give details of a case law in case of payment made through LC. Assume that u have taken a LC for foreign payment, then u will pay to the banker and the banker will pay to the Foreign Vendor. Hence, it is not a foreign payment. However, in case of a credit card payment, it is as good as u have given a cheque in USD and the banker is just honouring the payment on ur behalf. Trust this clarifies u.
CAclubindia
