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SANJAY MAHESHWARI ACA ACS (Chartered Accountant)     15 December 2011

Tds on sponsorship fee

Please Clarify, whether TDS will be deducted on sponsorship fee payment of Rs. 50000/-



 13 Replies

CA Shraddha (Mcom, CS Exe.)

CA Shraddha (Mcom, CS Exe.) (Service)     15 December 2011

In my opinion it would be covered u/s. 194C and the rate of TDS should be @ 2% if the payee is not an individual / HUF otherwise @ 1%.

Regards

Shraddha

 

valji

valji (Accounts manager-MBA)     15 December 2011

agreee with above it come under sec 194c

CA Ketan Waghela

CA Ketan Waghela (Partner at Elite Educare)     15 December 2011

Sanjay ji,

 

Sponsership fees is subject to deduct (If not for charitable purpose) TDS u/s 194 J @ 10% (20% if the party doesnt have PAN).

TDS can be deducted u/s 194 C @ 2% or 1% (as Sharaddha ji said above) if  there is a contract between the parties.

but it is advisable to deduct TDS at higher rate to avoid any issues ahead.

1 Like
Sunil

Sunil (Internal Auditor)     15 December 2011

Circular Number 715 dated 8-8-1995 made it clear that the agreement of sponsorship of debates, seminars and other functions in school/college/associations is in essence an agreement for carrying out a work of advertisement and provisions of section 194C applies.

So based on the above circular if your sponsor ship is two bill which were below 30000/- TDS provisions will not apply as it did not crossed the limited of Rs. 75000/-

But if it is a single bill it will attract TDS liablity at the rate prescribed as it corssed the limit of Rs.30000/- p.a

 

1 Like
CA PRAVEEN SINGH

CA PRAVEEN SINGH (MANAGER ACCOUNTS)     15 December 2011

 

ircular Number 715 dated 8-8-1995 made it clear that the agreement of sponsorship of debates, seminars and other functions in school/college/associations is in essence an agreement for carrying out a work of advertisement and provisions of section 194C applies.

So based on the above circular if your sponsor ship is two bill which were below 30000/- TDS provisions will not apply as it did not crossed the limited of Rs. 75000/-

But if it is a single bill it will attract TDS liablity at the rate prescribed as it corssed the limit of Rs. 30000/- p.a

AGREED....

buxi

buxi (student)     15 December 2011

Sirs... if it is other than place school/college/associations  what will be the provision ?

CA Kiran Sutrave

CA Kiran Sutrave (CA)     17 December 2011

Sponsorship payment is covered under Section 194C. This clause is applicable only if a single payment exceeds30,000/- or payment during the year is more than75,000/- whichever is earlier.

 

TDS is deductible under Section 194C @ 1% if the payment is made to an individual / HUF or @ 2% if payment is made to other persons.

 

It is necessary to note here that in case of Sponsorship (after excluding certain services), the person receiving the sponsorship would be liable for Service tax payment under "Sponsorship Service" - Section 65(105)(zzzn) - which means that as a Service receiver you are liable to pay Service Tax 

Deepak Pradhan

Deepak Pradhan (Practice)     22 May 2014

it would be covered under 194C.
Manjita Rane

Manjita Rane   30 August 2016

Please clarify whether TDS will be applicable for given below :

Corporate Sponsorship Fee for the Technical Seminar “Emerging Trends in Automation” organized by ISA Kolkata Section on 28th May 2016 at Hotel Taj Bengal, Kolkata Rs. 40000 

Kartikey Jain

Kartikey Jain (Intern)     04 July 2018

Originally posted by : Manjita Rane
Please clarify whether TDS will be applicable for given below :

Corporate Sponsorship Fee for the Technical Seminar “Emerging Trends in Automation” organized by ISA Kolkata Section on 28th May 2016 at Hotel Taj Bengal, Kolkata Rs. 40000 

If it is in the essence of advertisement, TDS u/s 194-C shall be deducted.

VIJITH TK

VIJITH TK (Accountant)     12 July 2018

Can anyone tell me how to book a receipt enrty for sposorship payment received means .. wether that is incom or other income  

Sumit Jangir

Sumit Jangir   10 October 2019

Dear Sir,

 whether TDS will be deducted Under Section & Why Pls Attach Fille on sponsorship fee payment of Rs. 500000 + Gst-18%

 

 

Suresh Thiyagarajan

Suresh Thiyagarajan (Student)     11 October 2019

1. As per circular no. 715 dated 08.08.1995, service of sponsorship is in the nature of the contract for carrying the work undertaken to execute an event, hence TDS u/s 194C will be applicable in the given case. 
Please correct me if the above solution has an alternative view. 


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