TDS on TV Commercial production

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Suhas Patil (Querist)
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27 January 2011 We are production house producing tv commercial for advertising agencies. some agencies deduct tax @ 2% us 94c and some deducted @ 10% us 94J. I want to know which section is correct and why there is difference in deduction?

Thanks

Suhas Patil

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Guest (Expert)

27 January 2011 Sec. 194J is more correct

CA Shiv

CA Shiv (Expert)
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28 January 2011 There is no fault to deduct more TDS. and when one is confused always go for the higher one.... No one will loose anything...

Suhas Patil

Suhas Patil (Querist)
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28 January 2011 But we are working in the margin of 15 to 20% and that is also not in all the cases. then how it is possible to run the business where the tds has been deducted @ 10%

CA Shiv

CA Shiv (Expert)
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28 January 2011 TDS is not your expense.
It is tax paid. And if higher TDS is deducted, than you will get refund also.

For the advertising Agency TDS is to be deducted at 2% under 194C.
https://www.incometaxquery.com/tds/tdsoncontractors.html

Ask your customer to deduct 2% only.

Guest

Guest (Expert)

28 January 2011 But queriest is not an ad. agency?

CA Shiv

CA Shiv (Expert)
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28 January 2011 Sorry..
My mistake to write Ad agency in explanation above.
Better to deduct tax 194C at 2%.
and i dont think it is a professional service.

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