194C ADVERTISEMENT CONCTRACTS

TDS 1717 views 2 replies

Aganesh

13 Points Joined March 2007

Dear collegues,

A client was paid an amount of Rs. 102000 to an advertising agencies for advertisment in ALL INDIA RADIO (not directly to AIR) without dedcting tds during the fy 2004 - 2005

1. All single contracts are below rs.20000/-
2. All payments are below rs.20000/-
3. All payments are made before 30/09/04

As per the new amendments made in sec 194c aggregate amount exceeds rs.50000/- in a financial year he is liable to deduct tds.(w e f 1/10/2004)

Even though his aggreate payments exceeds Rs.50000/- in a financial year but all the payments are made before 30/09/04

according to section 194c whether is he liable to dedcut tds on the payments made for advertising contract or not

Replies (2)

Late CA Sampat Jain

Chartered Accountant

4772 Points Joined March 2007

No...how could he made tds on payments made prior to amendment as per amended provisions

Rajeshmittal

71 Points Joined March 2007

In case of transportation it well settled that each GR is a seprate contract ifothewise there is a special contract with the transporter hence not liable to deduction of TDS before the current amendment. The same ratio can be extended in this case also hence no tds liability if one can prove these are seprate contracts.