Tds on sponsorship

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Ravi Kiran (Querist)
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17 August 2012 Hi,

Our company is sponsoring an event organised by CII of Rs 500000.

My question is that under which section TDS should deducted.

Regards,

Ravi Konda

CA Navin Jain

CA Navin Jain (Expert)
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17 August 2012 the agreement of sponsorship is in essence an agreement for carrying out a work of advertisement.

Therefore, provisions of section 194C will apply. [Circular No.715 dt.8-8-1995]

Further sponsorship is covered by reverse charge from 01.07.2012 under service tax, hence sponsorship organiser also liable to pay srevice tax.