Tds on sponsorships

Whether deduction of tax is required to be made under section 194C for sponsorship of 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 ?
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The agreement of sponsorship is, in essence, an agreement for carrying out a work of advertisement. Therefore, provisions of section 194C shall apply.
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Circular : No. 715, dated 8-8-1995.

Thanks for the info Deepak...  But, When should the credit for such TDS be taken by the receiver if the sponsorship is for more than one year... 

Sir

But in a case where the entire sponsorship is received in the first year itself for a long period of time(say 20 years), how can the TDS credit be claimed in the first year.

Will it not contradict with the Matching Conept, as Sponsorship received at a time wil be shown as liability and will be transferred to income over a period of 20 years(in current case) and TDS relating to this income is claimed totally this year........? 

Shashi and Abhishek

Please refer Rule 37BA(3).

Where tax has been deducted at source and paid to CG and income is assessable over a number of years, credit shall be allowed across those years in same proportion in which income is assessable to tax.

Hope your anxiety is clear now.

Regards,