194c advertising

According to sec 194c, any Payment to Resident Contractors / Sub- Contractor or Advertisement Contractor exceeds Rs. 30,000/- per contract or aggregate amount for the financial year exceeds Rs. 75,000/- then the assesse has to deduct tax at the specified rate. if the payment is classified under advertisement then mandatory to deduct tax, if the same can be clasified as marketing exp then no tds is to be deducted.

Thanks.. but the point is that there is no contract

we deduct tax on account of advertisement, not for contracts. so is the nature of the payment that matters. if u classified it as advertisement then deduct tds.

Looks like that is the safest thing to do. thanks!

madom, its just my view and i think u should reffer some more. thank you.

Madhavi how can u say that there is no contract. Its an agency contract between principal & agent.which may be expressed or implied so it will definitely be a contract. There is

Hence TDS applicable @ 2% on payment or credit whichever is earlier by person other than indiv. & HUF not liable for tax audit 44AB

The % will be 1%, since the deductee(ad agency) is individual.

No there is 2% tax rate on advertisement charges and 1 % or 2% tds rate is on payment to contractor or subcontractor only not on advertisement charges.

hello friends whethet tds on event management services provided by company to its clients comes under the preview of sec. 194j or 194C ? I think the language o used in sec. 194C is that contract or subcontract is to do some work by supplying labour on behalf of other person and contractual relationship must exist bw both parties for invoking sec. 194C . can it be a professional service & sec. 194j apply here bcz its safer to deduct tax at 10% higher rate than 2% or 1%? plz reply soon thanks in advance for ans.

can you tell me since when this change is made 2% TDS for advertising contracts?

Dear Madhavi Pandith,

ther should be Contract whether it is advertise or any other type of Work,

in your case as it  is only one year payment even though there is no express contract between the deductor and deductee but there is an implied contract. and also section 194C is not demanding only express contract.

therefore TDS should be deducted at 1%.

And there is no such intimation available that 2% for Advertisement work.

 

 

 

 

Dear all,

As karan said 2% on advertisment was inserteted in the income tax(ammemdment)act 1995, however in finance act 2009 that speial 1% on advtis been cancelled. Now tax rate is applica'ble as per the status of assesee . Hence if 'asesse  is individual itis 1"%only not 2% persent for adv exp under section 194c