we are digital marketing agency, we taking service of advertisement from Facebook to run advertisement on facebook, I want to know that do i deduct TDS with 194J sec. ya 194C
21 June 2022
Deduct 6% eqalisation levy. Equalisation Levy is a direct tax, which is withheld at the time of payment by the service recipient. The two conditions to be met to be liable to equalisation levy: The payment should be made to a non-resident service provider; The annual payment made to one service provider exceeds Rs. 1,00,000 in one financial year.
As of 2019, Facebook ads in India are now sold by Facebook India, billed and paid for in Indian rupees, and subject to a Goods and Services Tax (GST) and Tax Deducted at Source (TDS). While there are different rates for TDS depending on service, the rate for advertising is 2% (as per a notification issued by the Government of India, for the period of 14 May 2020 until 31 March 2021, the applicable TDS rate for advertising is 1.5%). This affects all ad accounts that have their business country set to India.
GST and TDS are added whenever you're charged for your ads. The amount charged includes TDS, but you're still required to pay TDS to the government as per local law. If you're an advertiser that resides in a Special Economic Zone (SEZ), you may be certified with the government as GST exempt.
To claim your refund from Facebook, click here to submit a copy of your TDS certificate. Your TDS certificate is sent by the government after you pay Facebook
Bear in mind that:
It may take up to two months for Facebook to validate and process the refund. You'll get an email once the refund has been processed. The refund will be in the form of a Facebook ad credit and automatically applied to your ad account. At this time, we don't provide invoices for these ad credits. Excess deposits will result in a delay or rejection of the refund. All certificates must be received by 31 October for the previous fiscal year. For example, certificates for 1 April 2018-31 March 2019 must be received by 31 October 2019. Any certificate received after this date will not be granted. If you would like to claim back TDS, your GSTIN or PAN must be added to your account. If you have more than one ad account, your GSTIN or PAN must be added to each account. Note: Facebook isn't able to give tax advice. If you have a question about taxes, we suggest that you contact your tax advisors or local tax authorities.
21 June 2022
Dear Rajni, TDS to be deducted u/s 194C @ 2%. Facebook, Zomato, Swiggy and many of the aggregators/digital marketing companies, those are large in size works under this model. We have to submit the TDS, issue the form 16A and claim refund from the deductee (in your case facebook)
CAclubindia
