Tds deduction on services
This query is : Resolved
10 October 2017
1. my freind doing media service , he is taking input services in nature of purchase. whether he has to liable to deduct TDS. then in which section he has to deduct.
11 October 2017
Whether TDS deduct or not depends on nature of payment & amount of payment.
11 October 2017
Thank you Madam,
But
like he taking input service from audio services (Radio) Services,
But
like he taking input service from audio services (Radio) Services,
12 October 2017
Which input service?????
13 October 2017
like radio advt service, paper advt service
27 July 2025
Got it! Here’s a clear explanation regarding **TDS deduction on services**, especially in the context of your friend’s media business:
---
### When does your friend have to deduct TDS?
* **If your friend is paying for any services**, and the payment crosses the threshold limits prescribed under the Income Tax Act, **he is liable to deduct TDS**.
* The **nature of service payment** determines under which **section** the TDS needs to be deducted.
---
### For media-related services like radio advertisement, paper advertisement, or other similar services:
* These payments are generally classified as **Professional or Technical Services**.
* TDS deduction for such services is typically done **under Section 194J** (TDS on fees for professional or technical services).
* **Rate of TDS under Section 194J:**
* 10% (or 2% if the payment is to an individual or HUF)
* Threshold limit: Payment exceeding Rs. 30,000 in a financial year.
---
### Some points:
* **Input services** like audio services, radio services, print advertisement services are treated as **services rendered**; hence TDS is applicable if payment exceeds the threshold.
* If it’s purely purchase of goods (not services), TDS may not apply.
* For **advertising services**, the tax deduction is under **Section 194C or 194J** depending on the exact nature of the contract (works contract or professional service). Usually, media/advertising is under **194J**.
---
### Summary:
| Type of Service | Relevant Section | TDS Applicability Threshold | TDS Rate |
| ------------------------------------- | ---------------- | ----------------------------------------- | --------------------------- |
| Radio/Print/Digital Advertisement | 194J | > Rs. 30,000 per year | 10% (2% for individual/HUF) |
| Works Contract (e.g. printing, event) | 194C | > Rs. 30,000 per bill / Rs. 75,000 yearly | 1% or 2% |
---
If your friend is unsure, they should review the service agreement or payment nature and confirm whether it falls under professional/technical service or works contract.
---
**Do you want me to help draft a specific TDS compliance checklist or guide for your friend’s media services?**
---
### When does your friend have to deduct TDS?
* **If your friend is paying for any services**, and the payment crosses the threshold limits prescribed under the Income Tax Act, **he is liable to deduct TDS**.
* The **nature of service payment** determines under which **section** the TDS needs to be deducted.
---
### For media-related services like radio advertisement, paper advertisement, or other similar services:
* These payments are generally classified as **Professional or Technical Services**.
* TDS deduction for such services is typically done **under Section 194J** (TDS on fees for professional or technical services).
* **Rate of TDS under Section 194J:**
* 10% (or 2% if the payment is to an individual or HUF)
* Threshold limit: Payment exceeding Rs. 30,000 in a financial year.
---
### Some points:
* **Input services** like audio services, radio services, print advertisement services are treated as **services rendered**; hence TDS is applicable if payment exceeds the threshold.
* If it’s purely purchase of goods (not services), TDS may not apply.
* For **advertising services**, the tax deduction is under **Section 194C or 194J** depending on the exact nature of the contract (works contract or professional service). Usually, media/advertising is under **194J**.
---
### Summary:
| Type of Service | Relevant Section | TDS Applicability Threshold | TDS Rate |
| ------------------------------------- | ---------------- | ----------------------------------------- | --------------------------- |
| Radio/Print/Digital Advertisement | 194J | > Rs. 30,000 per year | 10% (2% for individual/HUF) |
| Works Contract (e.g. printing, event) | 194C | > Rs. 30,000 per bill / Rs. 75,000 yearly | 1% or 2% |
---
If your friend is unsure, they should review the service agreement or payment nature and confirm whether it falls under professional/technical service or works contract.
---
**Do you want me to help draft a specific TDS compliance checklist or guide for your friend’s media services?**
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