Tds on online advertising

This query is : Resolved

CA Saugata Chowdhury (Querist)
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30 December 2011 Hi

My conpany addvertise on verious internet site (face book, yahoo like). As and when any user click on the link of our advertisement an amount has been deducted from our corporate CC account. The amount deducted in a year is faily good and expecting more in the current year.

Please let me know the applicability of TDS and service tax on that. If possible please let me know the whole mechanism.

Vishal D Shah

Vishal D Shah (Expert)
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31 December 2011 Some more details is preferable for proper advise.
Cavishalshah@gmail.com

CA Saugata Chowdhury

CA Saugata Chowdhury (Querist)
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31 December 2011 As per Income Tax act we need to deduct tax on advertisement contract U/s 194C. In the above case we are doing advertisement through the website. The payment is autometically debited from our corporate credit card account based on the clicking by the user to the given link. We booked expenses after words.

My query is the TDS obligation how can I meet? because the amount has already been paid ( since paid/ credited which ever is earlier as per 194C) . Do I need to paid the TDS from our side and issue a debit note to the vendor. Or if there is any other way please let me know.

Vishal D Shah

Vishal D Shah (Expert)
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31 December 2011 There shall not be any TDS obligation if server/beneficiary is located outside India.(facebook & yahoo both are US sites)
No other formalities need to be complied with in such a case as amount is paid by credit card. This shall be governed by 195 and not sec 194C.

CA Saugata Chowdhury

CA Saugata Chowdhury (Querist)
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02 January 2012 Thank you sir.

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