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

Update for current readers: the 6% Equalisation Levy on online advertisement payments to non-residents was abolished from 1 April 2025, so payments to Meta Ireland now need neither EL nor TDS (no PE income); if billed by Facebook India with GST, it's a domestic advertising contract — TDS as for contractors (earlier 194C) and GST ITC available.