Tds liability on payment for taking space in trade fair

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Anjani Kumar Singh (Querist)
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20 June 2013 whether payment for taking space in trade fair is liable to tax deduction? If yes then under which section and with reasoning? Whether it will comer under category -'Rent' or 'Advertisement' or 'Contract' payment ?
If you have any details please mail me on my maid id which is anjani_inform@yahoo.com. Please suggest at earliest.

Rupesh Jain

Rupesh Jain (Expert)
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20 June 2013 under advertisemnt u/s 194C

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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20 June 2013 Sec 194C advertisement.

The space is taken to facilitate advertisement and for commercial purpose

Ganeshbabu K

Ganeshbabu K (Expert)
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20 June 2013 TDS 194I applicable @ 10% with below explanation..

1)Here payment was made for use of land..and it cannot be treated as advertisement contract and TDS @ 10% will be applicable and applicable section 194I.

2)Please refer circular 715 dated 08.08.1995

if a person has taken a particular space on rent and thereafter sublets the same fully or in part for putting up a hoarding, he would be liable to TDS under section 194-I and not under section 194C.

i think here transaction of author was exactly related to this hence 194I will be applicable and not 194C.

3)Scope and meaning of ‘advertising’ which was provided in —Circular : No. 714, dated 3-8-1995.

(a) Regarding the scope and meaning of the term ‘advertising’ used in section 194C(1), it is clarified that advertising may be in print or electronic media, i.e., in newspapers, periodicals, radio, television, etc.
with above meaning i think it is not advertising contract.

Thanks & regards
Ganesh babu k

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