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Tds on advertisement charges

Afzal Momin (CA FINAL) (177 Points)

24 January 2012

Dear friends please help me with my Query

Does Payment of Advertisememt Charges attract TDS deduction......?

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13 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 24 January 2012

Originally posted by : Afzal Momin
	Dear friends please help me with my Query Does Payment of Advertisememt Charges attract TDS deduction......?

In view of the Supreme Court decision in Associated Cement Co. Ltd. v. CIT [1993] 201 ITR 435, the CBDT has issued the following guidelines in regard to the applicability of the provisions of section 194C :

(vii) Provisions of section 194C would apply in relation to payments made to persons who arrange advertisement, broadcasting, telecasting, etc.

Threshold

Single Transaction = 30,000, Aggregate during FY = 75,000

Company, Firm, Co-op Soc., Local Authority = 2%

Individual, HUF = 1%

If No PAN OR Invalid PAN = 20%

1 Like

Afzal Momin (CA FINAL) (177 Points)
Replied 24 January 2012

Is it a provision in the F.yr 11-12 ?

Deepak Gupta (CA Student) (15922 Points)
Replied 24 January 2012

Originally posted by : Afzal Momin
	Is it a provision in the F.yr 11-12 ?

Yes, TDS is to be deducted during FY 2011-12

As per Sec 194C (as amended by Finance Act 2011), TDS is to be deducted on Payment to Contractors for carrying out any work.

and “work” shall include—advertising

Hemant Kumar (Accounts Manager MBA (Fin) CMA*) (6450 Points)
Replied 24 January 2012

Agree with Deepak.

valji (Accounts manager-MBA) (2150 Points)
Replied 24 January 2012

agreee with mr gupta

Afzal Momin (CA FINAL) (177 Points)
Replied 24 January 2012

Thanks Mr.Deepak for your valuable advice..........

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 25 January 2012

(vii) Provisions of section 194C would apply in relation to payments made to persons who arrange advertisement, broadcasting, telecasting, etc.

Threshold

Single Transaction = 30,000, Aggregate during FY = 75,000

Company, Firm, Co-op Soc., Local Authority = 2%

Individual, HUF = 1%

If No PAN OR Invalid PAN = 20%

RIGHT SAID BY ABOVE....

2 Like

swathi (Accounts Officer) (349 Points)
Replied 25 January 2012

Provisions of section 194C would apply in relation to payments made to persons who arrange advertisement, broadcasting, telecasting, etc.

Threshold Limit for payments

Single Transaction- 30,000, Aggregate during the FY-= 75,000

Company, Firm, Co-op Soc., Local Authority = 2%

Individual, HUF = 1%

If No PAN OR Invalid PAN = 20%

1 Like

LALIT NAVANDAR (Consultant, Advisor) (35 Points)
Replied 05 July 2012

Thanks to Afzal , Deepak , Valji n Praveen Singh

Prashant Nalawade (Sr.Account Executive) (33 Points)
Replied 21 August 2013

sir i want clearification about tds deduction...

if 1 bill amount is rs 30000/- so we can deduct tds or no...

Sourav Sardar (accounts executive) (22 Points)
Replied 06 March 2017

Provisions of section 194C would apply in relation to payments made to persons who arrange advertisement, broadcasting, telecasting, etc. Threshold Single Transaction = 30,000, Aggregate during FY = 75,000 Company, Firm, Co-op Soc., Local Authority = 2% Individual, HUF = 1% If No PAN OR Invalid PAN = 20%

Vishal Kumar (Student) (37 Points)
Replied 10 June 2017

SIR, on Advertisement Expenses, during August month Aggregate Amount Exceeds Rs. 1,00,000, and in september month Advertisement Expenses paid for Rs. 10000. For this 10,000 Tds to be deducted or not.

Kartikey Jain (Intern) (2377 Points)
Replied 05 July 2018

Originally posted by : Vishal Kumar
	SIR, on Advertisement Expenses, during August month Aggregate Amount Exceeds Rs. 1,00,000, and in september month Advertisement Expenses paid for Rs. 10000. For this 10,000 Tds to be deducted or not.

Yes, TDS is to be deducted on payment made in september irrespective of the amount, since the threshold of Rs 1,00,000 has already been breached in the month of August.