Hi,
Does the TDS appicability on advertisement expenses falls under 194C or 194J
Thanks in advance
C.A Varsha Premachandran (Practice) (85 Points)
28 February 2017Hi,
Does the TDS appicability on advertisement expenses falls under 194C or 194J
Thanks in advance
kiran
(Student)
(98 Points)
Replied 28 February 2017
As per section 194C of Income Tax Act
Any person responsible for paying any sum to any resident (contractor) for carrying out any work (includes supply of labour) in pursuance of a CONTRACT between the contractor and the specified person then the specified person has to deduct TDS on the amount paid or payable for the work done.
Here work includes:
1.Advertising
2.Broadcasting,telecasting of products
3.Catering etc.,
ASSUMPTIONS: There is a contract between Advertiser and Advertisee.
Based on the above assumption TDS on Advertisement falls under section 194C.
If there is no contract then it falls under Section 194J treating the advertisement as technical service.
kiran
(Student)
(98 Points)
Replied 28 February 2017
Section 194J deals with TDS on technical or professional services.
Rajesh
(Sr. Accountant)
(27 Points)
Replied 06 March 2018
have any notification from income tax for same
Siddharth Goel
(Chartered Accountant)
(3031 Points)
Replied 03 July 2018
Hi,
TDS u/s 194C is applicable for advertising services. This has been further explained and clarified in the attached document.
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