TDS on Advertising

New TDS rate u/s 194C of Income Tax Act, 1961 w.e.f. from 1st Oct. 2009 :-

Contracts to Transporter, who has provided a valid PAN        0%*

Contracts to Individuals/HUF                                                        1 %

Contracts to others  ( eg. Companies etc. )                               2 %

* If there is no PAN details, then @ 1% or @ 2%. From 1st April 2010 it is 20%.

  No education cess and Surcharge in case of resident and 3% E.C. in case of non resident.

for example if contractor is Individual or HUF as the case may be then TDS will be deducted @ 1% in all types of Contracts. If Contractor is other than Individual/ HUF then applicable TDS rate will be 2%. 

In order to clear your other associated query, i would like to inform you that w.e.f. basis of rate of TDS u/s 194c has been changed from nature of contract i.e. main contract or sub contract as earlier, tostatus of contractor i.e. Individual/HUF/Others as mentioned above.

I hope above information will be helpful for you and now you will be able to determine applicable rate of TDS u/s 194C. Feel Free to ask more about it, if any.

Lalit Talesara

( B.Sc. and Pursuing CA & CS )