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Tds on rent of space for advertising hoarding board

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This query is : Resolved

Alokranjan Sinha (Querist)

26 June 2018 We are registered company and we have made a contact with another party ( individual) to erect hoarding board for advertisement of our company, and as per contact we are making payment rs. 8000/- per month. Now please tel us whether TDS will be deducted under section 194C ( advertisement) or under section 194I ( Rent).

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KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

26 June 2018 As per definition of work contract as given in Explanation to section 194C of the Act, which includes theword ‘advertising’ in definition of “work”. It was further explained that there was no nexus between the assessee and the owner of the land, building, or plant and machinery, etc. Therefore, there is no question of assessee being liable to deduct the tax u/s.194I of the Act.

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