Dear All
What is the rate of TDS on payments to advertisement agency? if the total amt paid is more than Rs 30000/- in a financial year but the payments per day do not exceed Rs 25000/- even then should tds be deducted before releasing the payment
thanks in advance
It is 2% on payment to advertising agency.
| Originally posted by : Ajay Mishra | ||
| what about the limit of rs 30000/-? is it per year or per transaction |
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Dear Sudha,
the limit of 30000 applies to per contract/transaction.. and for the whole year, limit is 75000... u/s 194C..
Yes, If Rs. 75000or more is annual payment then TDS is mandatory and If any one invoice is more then Rs. 30000/- then TDS on single invoice is also mandatory.
As per sec-194C of Income Tax Act 1961, TDS shall be 2% on all contracts including sub-contracts and advertisement contracts.
The tax is required to be deducted if a single payment exceeds Rs.30000/- or if the aggregate payment exceeds Rs. 75000/- per annum
As per Section 194C, deduct tax @ 1% if the payee is an individual/HUF.
Deduct tax @ 2% in the case of all other payee.
Limits: If single payment exceeds Rs.30000 or aggregate payments in a year exceed Rs. 75000
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