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Tds for online marketing services

gayan (Audit Assistant) (24 Points)

08 May 2014

I have this question that has killed my brains since this evening and I can't think no more. Would really appreciate correct advise please.

A & Co. operating and registered in India is providing B & Co. operating and registered in India, online marketing services using tools such as Google Adwords, Facebook & LinkedIn Ads. and Social Media Marketing. They are also charging a fee for online consulting.

I’d like to know the tds procedure to be followed for the same.

I do understand that the Consulting Fees attracts TDS at 10% under section 194J. But I am unable to understand the tax implication for the Google & Facebook Ads.

I highly appreciate any answers.

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4 Replies

Rajagopalakrishnan R (PARTNER) (1417 Points)
Replied 08 May 2014

The online marketing services can be defined either as contratual services or as technical services depending on the actual nature of services rendered by the service provided. for eg if the services require extensive scriptting, programming etc, then we may have to classify as techincal services, in which case TDS would be 10%. If it is merely creating visibility with google adwords, oher search engines etc, then it can be a contract in which case the TDS will be 2%

2 Like

Hitesh Kumar (Manager) (2 Points)
Replied 31 August 2018

what if influencer is doing unboxing activity on you tube for our product. I understand its a professional service. Please help

Neeraj Singh (2 Points)
Replied 06 May 2020

Tds depends upon nature of advertising contract done. If it is a contract done like for yearly , quaterly , for 2 advertisements, 3 advertisements etc than tds will be deducted under section 194c. ... Under 194j if payment made in a financial year to same person is less than 30000 rs than no need to deduct tds.

gamenses (sales) (22 Points)
Replied 26 October 2021

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