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Tds applicable or not..?

CA M.NAGARJUNA REDDY (CHARTERED ACCOUNTANT) (591 Points)

16 February 2012

Any one plz suggest on the following...

One Company paid sponsership fees to an agriculture university for conducting a seminar.

In return, this company's name and product details are published on the manual of that seminar.

The issue is- whether company is required to make TDS on that amount...?

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10 Replies

Suguna (VP) (98 Points)
Replied 16 February 2012

the amount paid is towards seminar. however the companies name and product details are published on the seminar manual and hence would amt to advertisement and TDS is deductable .

1 Like

CA M.NAGARJUNA REDDY (CHARTERED ACCOUNTANT) (591 Points)
Replied 16 February 2012

Ok. Thank you !!!!

Then, under what section...?

Section 194C ..?

(Guest)

Yes u/s 194 C tax is deductible.

2 Like

m nagar (articled) (52 Points)
Replied 16 February 2012

As it leads to advertisement tax is deductible u/s194 C.

1 Like

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 16 February 2012

Yes agree with above...

Payment of sponsership fees for publishing name of company & its product is just like advertisement...

so that it is a advertisement contract, tds is to be deducted u/s 194c....

1 Like

Niraj Mahajan (Practising CA) (985 Points)
Replied 17 February 2012

194C applicable, but in case the company is also availing any stall at the exhibition, 194I may be attracted. If stall is not availed, deduct u/s 194C.

1 Like

Shameer Kuppanath (article assistant) (52 Points)
Replied 17 February 2012

Whtether TDS is attracting to the payment of Technology Tranfer Fees??????whether it coming under 194J?

manoj (C.A. ) (43 Points)
Replied 17 February 2012

The substance of the transaction is an Advertising Contract Covered under the definition of Work as given in Explanation to S.194C.

Hence,TDS is to be made u/s 194C.

kuldeep shukla (Article) (28 Points)
Replied 20 February 2012

Whether Tds has to be deducted by an Individual on House Property not used for Business purposes under 194 I? Though he is a partner in Firm and the Firm is liable for Audit?