Tds on payment to facebook

This query is : Resolved

Deepika (Querist)
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16 January 2017 if an indian company is paying advertisement payment to Facebook...then tds should be deducted on such payment.

CA Suresh Jain

CA Suresh Jain (Expert)
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18 January 2017 Yes, TDS has to be deducted

Deepika

Deepika (Querist)
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18 January 2017 on which amt ?? at what %

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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27 July 2025 When an Indian company pays advertisement fees to **Facebook (a foreign company)**, TDS provisions under **Section 195** of the Income Tax Act apply because the payment is made to a non-resident.

### Key points:

* **Nature of payment:** Advertisement service fees.
* **TDS section:** Section 195 (Payment to non-resident).
* **TDS rate:** Generally **10%** on the gross amount (payment made).
* **TDS to be deducted on:** The **gross payment amount** (total invoice value before any deductions).
* **Note:** If DTAA (Double Taxation Avoidance Agreement) between India and USA (Facebook’s jurisdiction) provides a lower rate, that can be applied if a valid Tax Residency Certificate (TRC) is furnished.

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### Example:

* Invoice from Facebook for ad services: ₹1,00,000
* TDS @ 10% = ₹10,000 to be deducted and paid to the government.
* Payment made to Facebook = ₹90,000 after TDS deduction.

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### Summary:

| Parameter | Details |
| ----------------- | -------------------------------- |
| Nature of payment | Advertisement fees |
| TDS Section | 195 |
| TDS Rate | 10% (subject to DTAA provisions) |
| TDS on amount | Gross payment amount |

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