Tds on advt

TDS 1008 views 6 replies

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

 

Replies (6)

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

 

 

 

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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