Tds on commission

I think there must be a contract between bank and the agent so deduct TDS  under 194C and book the whole expense as advertisment expense and don't show commission expenses separately.

I think bank should be clear in their transaction with agent & media

first I think if bill is raised by agent then bank no need to know about media

you also want to decide for agent i think if you don't give % on work then it will not consider as commission but it is like contract so its tds rate will be applicable

In the case of CIT v Director, Prasar Bharati 325 ITR 205 it was held that Payment made by Doordarshan to advertisement agencies in the form of discount held as commission.

in ur case bank is not liable to deduct tds u/s 194h on payment of lumpsum amount to advertising agency ...

For advertising contracts, deduct TDS @ 2%

2% TDS should be deducted on advertisement contracts u/s 194C

I think it is contract between bank & agent so that  advertisement  contracts u/s 194c . TDS  deducted should be 2 %.

payment for Advertisement is not commission and it comes under Contract u/s 194c  and for commission is 194H

I think so bank has to deduct 2% TDS under 194C and balance payment to be released to the agent. If the agent is Company than he has to deducted the TDS and balance amount is to be paid to media and if it is individual / partnership than TDS deduction depend upon the turnover of their business if they are coming under tax audit than they had to deduct the tax and balance is to be released under section 194C.

I think there is a contract between bank and agent so it is a contract if it is a contract then TDS will be chrage as per u/s194C which is 2%.

CA. Asrar Ansari