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Advertisement Bill

Diwakar (Manager-Cost Control) (74 Points)

08 June 2010

Dear Friends,

Under which section TDS be made on "Advertisement Bil"

- Advertisement bills submitted by ad agency for publication in print media

Can we consider it as Contract given to agency and deduct u/s 194C

It should be considered as professional service and deduct u/s 194 J

Plz Guide

D'waker

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11 Replies

Shudhanshu Agrawal (Business) (2570 Points)
Replied 08 June 2010

It should be considered under Section 194C and the payment made by the agency to the media person will consider under section 194J. Refer Circular No. 715, dated 8-8-1995.

Hitesh Kothari (Chartered Accountant M.No. - 134239) (326 Points)
Replied 08 June 2010

Dear Diwakar,

It will be under 194C since it is a contract for publication of advt in print media.

to consider it under 194J it must involve any kind of professional skill in executing this work. whereas 194C specifically includes this.

Regards

Hitesh

Jagdish Bhalia (Practicing CA) (453 Points)
Replied 08 June 2010

TDS would be deducted u/s 194C.

Ashish (CA) (166 Points)
Replied 08 June 2010

194C: The Contract definition consider Advertising Contract.

So, TDS under 194C.

CA Atul (Tax Manager) (294 Points)
Replied 08 June 2010

Advertising Bill is come under section 194-C (Payment to sub-contrect/Advt. contract) but at the time of audit of your company you have to show Advertising evidence, for eg. if you give your advertisement in any magzine then you have to take photocopy of first page of that magzine also take a photocopy of your advertisent both evidence staple with your original bill then only you can get claim in Advertisement Expenses.