Wheter Advertising agency commission is included u/s 194C or 194H
If a bill is for Rs.100/- from that the agency will get 15% as commission from the Newspapers. Agency bills for Rs.100/- + Service tax for 15% portion.
Some clients are arguing that TDS will be deduction on 85% u/s 194C @ 2% remaining 15% will attract 194H @ 10%. quoting circular 715 dt. 8.8.1995
It clearly says that the TDS should be on the gross bill and not on the portion of commission received.
I need a clear opinion or any circular or notification which will clear this issue.
CAclubindia
