TDS on Sponsorship payment

ponsorship agreement is in teh nature of advertisement contract.

Hence 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 dt.8-8-1995]