Tds deduction on facebook ads

Hi Sachin,

For us to accurately answer your query, could you tell us the complete name of the company which raises the advertising bill to you.

This is needed to determine whether the company is registered in India or outside India.

Also, is there any Service Tax charged from you?

Please share. Thanks.

In this case CBDT has introduced an Equalization Levy on payment by Indian Resident, for Advertisement services, to a Non-resident service provider.

This is to be paid at 6% from over and above the bill. This means that you personally will have to bear the cost of equalization levy.

There is a separate challan viz. Challan No./ITNS 285 for the same.

Kindly refer the following files for more info:

https://www.pwc.in/assets/pdfs/news-alert-tax/2016/pwc_news_alert_1_june_2016_cbdt_notifies_equalisation_levy_rules_2016.pdf

https://www.ey.com/Publication/vwLUAssets/Template_Equalisation_Levy_Alert.pdf/$FILE/Template_Equalisation_Levy_Alert.pdf

https://www.charteredclub.com/equalisation-levy/

Please refer to the below link:

https://www.facebook.com/business/help/571983419976170  

Regarding Equalization Levy for Facebook / Google /Bing Ads in India.


Do we need to pay Equalization Levy even if we run ads from Indian FB / Google /Bing ads account and incur GST in invoice. .

As per various Internet sources (ex reference video below ) , Its mentioned that FB /Google/Bing doesn't have permanent establishment (PE) in India and are subsidiaries in India ...So we need to pay Equalization levy @ 6% direct tax if ad expense exceeds 100000.
https://www.youtube.com/watch?v=h4aDVCAzJWI

Please let me know your take

For Facebook ads billed from Ireland, you'd typically need to consider Section 195 of the Income Tax Act for payments to non-residents, though many companies structure this differently depending on whether there's a permanent establishment involved. The TDS deposit process involves getting a TAN, filing Form 27Q, and paying via Challan ITNS-281 within the due dates. Since you're dealing with international digital advertising, proper facebook tracking of all invoices and payment proofs becomes crucial for audit trails, especially when reconciling foreign exchange remittances with your TDS returns. Have you consulted with a CA about whether the 2% equalization levy might apply here instead of traditional TDS?

https://stape.io/blog/facebook-tracking