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TDS section

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40 Points Posted on 12 December 2019
Hi,
We are Digital marketing company in which we provide online advertising services to the clients and charge them for Media Spends plus Agency fees.
For Media Spends i am clear that TDS will get deducted @ 2% as per section 194c (7) (iv)(a). However, i am confused about Agency fees whether it will be 194c, 194j or any other section.
Please note we provide recurring services to clients.
Thanks in advance.
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On 12 December 2019 at 20:53 Report
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"Do the Right Thing...!!!"
128147 Points Posted on 12 December 2019
Yes....You are exactly correct for media spends...

On Agency fees
if it's commission based then TDS u/s 194H...
If it's professional fee then TDS u/s 194J...
463 Reply
On 12 December 2019 at 21:33
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40 Points Posted on 13 December 2019
Thank you for your revert! It is not commission/brokerage. It can be termed as professional fees but actually it is recurring services which we provide to them. Will it go under 194c services?
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On 13 December 2019 at 10:50
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17264 Points Posted on 13 December 2019
Mayank , it will be a part of advertising services contract and hence apply 194C

What you are charging is not at all Commission/brokerage as you are not acting on behalf of anybody.

It is your service charges may be on %age of bill amount or based any other mode. That's part of your contract terms with the advertiser.

So apply 194C and not 194J .
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On 13 December 2019 at 13:35
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40 Points Posted on 13 December 2019
Great... Thank you Pravin. I am also of the same opinion.
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On 13 December 2019 at 14:07
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"Do the Right Thing...!!!"
128147 Points Posted on 13 December 2019
Yes... I agreed also if it's not professional services or Commission/Brokerage.
463 Reply
On 13 December 2019 at 14:16
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40 Points Posted on 13 December 2019
Yup, Thank you so much Raja for the help
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On 13 December 2019 at 14:17


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