Our company (Ltd.) is sponsoring a toutrial and paying Rs.1lakh towards sponsership.
Is TDS applicable?
Rahul
Sharad Saini
(Student)
(286 Points)
Replied 15 July 2010
i think tds should be deducted u/s 194c @ 2%. as it is in the nature of a advertising contract.
Amir
(Learner)
(4016 Points)
Replied 15 July 2010
Hi Rahul,
Sharad is correct -
In the case of sponsorship for debates, seminars and other functions held in colleges, schools and associations with a view to earn publicity through display of banners, etc., put up by the organisers, the agreement of sponsorship is in essence an agreement for carrying out a work of advertisement. Therefore, provisions of section 194C will apply. - Circular No. 715
CAclubindia
