Tds on advertising fee

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Amit Choudhary (Querist)
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28 April 2014 Please advise me that how can i deduct the TDS on Payment to Google . Because it paid by credit card and they deduct automatically .
So please tell me that what i have to do.

Thanks

Sandeep Dharar

Sandeep Dharar (Expert)
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28 April 2014 What type of Advertisement it is? U must pay to them by deducting TDS (if it crosses the limit), from the amount mentioned in the invoice.

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Amit Choudhary

Amit Choudhary (Querist)
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28 April 2014 This is advertisement for website development for promoting our tour package .And i want to know that what is the limit for that.

Thanks

Sandeep Dharar

Sandeep Dharar (Expert)
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28 April 2014 If it is website Development of urs then deduct it u/s 194J.

Sec 194J:-

If the payment exceeds Rs 30000/-
Rate of TDS- 10%

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Amit Choudhary

Amit Choudhary (Querist)
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28 April 2014 Thanks for your quick reply sir.
But how i can deduct the amount and pay to them because they deduct the amount from our credit card automatically.
Kindly give me the solution.

Sandeep Dharar

Sandeep Dharar (Expert)
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28 April 2014 U must have a talk with them regarding this matter. It is ur liability to deduct TDS. So I suggest u to talk with the responsible person about this matter.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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28 April 2014 Are you making payment for adwords? If yes, then it gets covered under 194c and not under 194J.

whom do you make payment to? Google India or google US/Ireland?

If you are making payment Google India, TDS is directly applicable and there are two ways to resolve situation:

1. either consider grossing up the fees and bear tds cost on your own.

2. request google india to provide you certificate that they have paid tax on this income.

if payment is being made to google US/ireland, it gets covered under section 195 and is not exposed to TDS as google US/ireland don't have a PE in India.

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Amit Choudhary

Amit Choudhary (Querist)
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28 April 2014 I was also confused about which section will be apply. And how we can deduct the TDS
It may do like this .
We will pay the TDS at myself on gross payment and give the TDS certificate to Google India and on behalf of that TDS certificate we can get the credit from them .

Nikhil Kaushik

Nikhil Kaushik (Expert)
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28 April 2014 see google is not bothered with your tax problems. What you need to figure out is whether they are agreeable to receiving fees net of taxes, or ready to provide you the certificate that they have paid tax on the income received from you.

If both are not possible, then you might have to bear the tax expense on your own.

In this scenario, you will show your books as follows: Amount Paid to google Rs 100, TDS: 2.04, total expense 2.04.

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