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Advertising Section 194J and 194C

Sunil (Trader) (2611 Points)

21 September 2009

Both the sections have provision for deduction on payments towards advertisements. 194C is for contract for advertisement and 194J just mentions professional services for advertisement. If we place ads in print media or any other medium like internet, which section will normally apply.

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4 Replies

Max Payne (employed) (2569 Points)
Replied 21 September 2009

194J covers models and artistes for their services in advertising. deduct @ 2.266% if the payment is to a paper. 1.133% if the payment is to an advcertising agency

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 21 September 2009

placing ads on print media is covered under the section 194C coz by placing ads we do not conduct any professional services but only contracts with advertisement company to print our ads. If we provide professional service like making of ads, providing tools & equipments etc necessary for printing of ads or any professional services then such services shall be liable to sec 194J.

Hope u will be able to understand my example.

regards,

ratan

Sunil (Trader) (2611 Points)
Replied 21 September 2009

Thanks Ratan Deep.

In such cases will Internet or Television or Cable or FM or such Media be under 194C or only print media?

If we engage an advertising company to arrange for display of our Ads and getting everything into place then 194C. Same for the media to whom we pay. If anyone actually designs and prepares advertisement material for us then we deduct u/s 194J. Same goes for everyone including models who pose in the ads etc. Is this correct?

kapil kumar agrawal (Chartered Accountant ) (169 Points)
Replied 22 September 2009

Dear

In sec 194c contracts are covered,,, it means contracts related to advertisements shall be covered in this section...

But in sec 194J only fees for professional or technical services are covered it means any service which is provided by any artist are covered under this sec...

and I also read in a book that if we have a contract with contractor then such transactions are covered in sec 194C only.... This is the ques of fact....

Models etc are covered under 194J....

Thanks