Tds rate on advertisment services

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Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2013 WE RECEIVED INVOICE OF ADVERTISMENT SERVICES IN NEWS PAPER, WHAT RATE OF TDS IN DEDUCT ?, PLEASE ADVISE

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 July 2013 Section 194C applicable.

Rate of TDS:

Individual/HUF 1%
Others 2%

Threshold Limit:

Single Bill Rs 30000/-

Annual Payment Rs 75000/-

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2013 194j is not applicable

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 July 2013 No Section 194C will be applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2013 i am think this is professional services, please tell why it is not professional services.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 July 2013 It will fall under an advertisement contract.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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03 July 2013 I support the view of CMA CS SANJAY GUPTA.
.
Advertisement has specifically covered under the definition of "work" vide explanation (iv) to section 194C.

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Ganeshbabu K

Ganeshbabu K (Expert)
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03 July 2013 Yes.. it is..Above experts suggested you clearly

TDS appicable under section 194C

Scope and meaning of ‘advertising’ -

1)Regarding the scope and meaning of the term ‘advertising’ used in section 194C(1), it is clarified that advertising may be in print or electronic media, i.e., in newspapers, periodicals, radio, television, etc.

2)In such cases, tax will be deducted at the rate of 1 per cent of the payment made for advertising including production of programmes for such broadcasting and telecasting to be used in such advertising. In all other cases of work of broadcasting and telecasting including production of programmes for such broadcasting and telecasting, where advertising is not involved, tax will be deducted at the rate of 2 per cent of the sum

—Circular : No. 714, dated 3-8-1995.

As said by paras bafna sir...it is also included in definition of work under section 194C Explanation (iV)

Thanks & regards
Ganesh babu k

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