TDS on Advertisement.

This query is : Resolved 

Querist : Anonymous (Querist) 11 January 2011

Dear Experts Good Morning,

Our company have to give an advertisement in a newspaper & we have to pay Rs. 29,150/- amount in a single bill to that agency.

Could you tell me tax rate & category for this.

Thanks for your time.

CMA. Subhash Kumar Jha (Expert)
11 January 2011

NO tds is required to be pay, if it is within the annual threshold limit of Rs. 75000/-, as this single bill is less than Rs. 30000/-

11 January 2011

for advertisement: TDS to be deducted u/s 194C - CONTRACT; company/Firm = 2% Indl/HUF = 1%; Maximum limit allowed as exemption is Rs.30,000/- per contract/Rs.75,000 per annum. In your case, TDS is not applicable since the value doesn't exceed Rs.30,000/-.

Querist : Anonymous (Querist) 11 January 2011

Thanks for your reply.

If we have to pay more than 30,000/- in a single payment then we are required to deduct TDS under TDS Contractor @ 1 % for Non Co. & 2 % Co. Is it correct. Please confirm.


CMA. Subhash Kumar Jha (Expert)
11 January 2011

Yes its correct.

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