TDS on Ad in Magazine.

This query is : Resolved

anckoora (Querist)
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22 December 2010 dear sir,
we are a pvt. ltd. co.(1) we give ad of our product in magazine (print media). For this, we deduct 2% TDS(94C). Is this OK ? (2) Also we give ad in tv channels. For this also we deduct 2% TDS (94C). Is this OK ?

thanks in advance
anckoora.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 December 2010 Section Applicable 194C
Rate of TDS:
Individual/HUF @1%
Others 2%
No PAN 20% (U/s 206AA)

Threshold limit:

Single bill
Rs. 20000 till 30.06.2010
Rs. 30000 from 01.07.2010

Annually
Rs. 50000 till 30.06.2010
Rs. 75000 from 01.07.2010

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 December 2010 If you are deducting TDS from deductee other than Individual/HUF you are correct in deducting TDS @2%. Other wise the rate will be 1% (i.e. in case deductee is Individula/HUF)

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 December 2010 Continuing Gupta Ji,Pl note that "advertising" is not defined in the Income tax Act,1961. Hence deductee's has to refer CBDT's clarifications regarding tax deduction. On a perusal the following observations emerges :-

1) Payment for advertisement in periodicals attracts section 194C.
2) Like wise payment to television media towards advertisement comes under the purview of 194C.

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