Tds liability on advertisement in news paper

Originally posted by : Sreejesh V K
	Dear All, I need your valuable words on the below case: I have an advertising agency and we are giving the advertisemnt of our customers in the news paper. I think for payment on adv in news paper have no TDS liability. My customers pay me after TDS amount at their end. Pls put your remarks on this issue. I need to deduct any TDS from Newspaper company? I can claim for any refund?

The term ‘advertising’ has not been defined in the Act. During the course of the consideration of the Finance Bill, 1995, the Finance Minister clarified on the Floor of the House that the amended provisions of tax deduction at source u/s 194C would apply when a client makes payment to an advertising agency and not when advertising agency makes payment to the media, which includes both print and electronic media.