Tds on advertisement charges

Originally posted by : Afzal Momin
	Dear friends please help me with my Query Does Payment of Advertisememt Charges attract TDS deduction......?

In view of the Supreme Court decision in Associated Cement Co. Ltd. v. CIT [1993] 201 ITR 435, the CBDT has issued the following guidelines in regard to the applicability of the provisions of section 194C :

(vii) Provisions of section 194C would apply in relation to payments made to persons who arrange advertisement, broadcast­ing, telecasting, etc.

Threshold

Single Transaction = 30,000, Aggregate during FY = 75,000

Company, Firm, Co-op Soc., Local Authority = 2%

Individual, HUF = 1%

If No PAN OR Invalid PAN = 20%

Is it a provision in the F.yr 11-12 ?

Originally posted by : Afzal Momin
	Is it a provision in the F.yr 11-12 ?

Yes, TDS is to be deducted during FY 2011-12

As per Sec 194C (as amended by Finance Act 2011), TDS is to be deducted on Payment to Contractors for carrying out any work.

and “work” shall include—advertising

Agree with Deepak.

agreee with mr gupta

Thanks Mr.Deepak for your valuable advice..........

In view of the Supreme Court decision in Associated Cement Co. Ltd. v. CIT [1993] 201 ITR 435, the CBDT has issued the following guidelines in regard to the applicability of the provisions of section 194C :

(vii) Provisions of section 194C would apply in relation to payments made to persons who arrange advertisement, broadcast­ing, telecasting, etc.

Threshold

Single Transaction = 30,000, Aggregate during FY = 75,000

Company, Firm, Co-op Soc., Local Authority = 2%

Individual, HUF = 1%

If No PAN OR Invalid PAN = 20%

RIGHT SAID BY ABOVE....

Provisions of section 194C would apply in relation to payments made to persons who arrange advertisement, broadcast­ing, telecasting, etc.

Threshold Limit for payments

Single Transaction- 30,000, Aggregate during the  FY-= 75,000

Company, Firm, Co-op Soc., Local Authority = 2%

Individual, HUF = 1%

If No PAN OR Invalid PAN = 20%

Thanks to Afzal , Deepak , Valji n Praveen Singh

sir i want clearification about tds deduction...

if 1 bill amount is rs 30000/- so we can deduct tds or no...

Provisions of section 194C would apply in relation to payments made to persons who arrange advertisement, broadcast­ing, telecasting, etc. Threshold Single Transaction = 30,000, Aggregate during FY = 75,000 Company, Firm, Co-op Soc., Local Authority = 2% Individual, HUF = 1% If No PAN OR Invalid PAN = 20%

 

SIR, on Advertisement Expenses, during August month Aggregate Amount Exceeds Rs. 1,00,000, and in september month Advertisement Expenses paid for Rs. 10000. For this 10,000 Tds to be deducted or not.

Originally posted by : Vishal Kumar
	SIR, on Advertisement Expenses, during August month Aggregate Amount Exceeds Rs. 1,00,000, and in september month Advertisement Expenses paid for Rs. 10000. For this 10,000 Tds to be deducted or not.

Yes, TDS is to be deducted on payment made in september irrespective of the amount, since the threshold of Rs 1,00,000 has already been breached in the month of August.