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tds on payment made to agent for advertisement

CA PAVAN KUMAR (chartered accountant) (68 Points)

29 June 2010

hi friends, i have a doubt regarding the payment made to agent for advertisement.

one of my client is paying amount to ABC communications(name changed) for advertisement. on that amount they are deducting tds u/s 195c. besides to this amount they are paying some consultancy charges which are 3% on the advertisement charges every month.

so friends my doubt is whether tds on such consultancy charges is comes under 194c or 194j or 194h.

pls clarify my doubt.

regards

pavan kumar.M

mpavan_kumar @ hotmail.com

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2 Replies

sagar (CA Final) (379 Points)
Replied 01 July 2010

your querry is whether payment of consultancy charges as a percentage of contract amount is subject to 194C or 194J?

payment of consultancy charges are always 194J. it is immaterial what basis they are paying.

if he thinks the deduction is higher then do not show as consultanct charges . instead show as contract payment only

(Guest)

Originally posted by : sagar
	your querry is whether payment of consultancy charges as a percentage of contract amount is subject to 194C or 194J? payment of consultancy charges are always 194J. it is immaterial what basis they are paying. if he thinks the deduction is higher then do not show as consultanct charges . instead show as contract payment only