For this you should know the diffrence between the Advt. agent and the advertiser. Suppose you are giving an ad to the newspaper directly then you should not.
But when you giving the ad to a newspaper through some agent then TDS applies.
Ref. Sec 194H Explanation (i) Commission or brokerage includes any payment received or receivable , directly or indirectly by a person acting on behalf of another for services rendered (not being professional services)or for any services in the course of....
A advertiser
B Agent
C advertising company
A will deduct on the amount paid to B
B will deduct on the amount paid to C
no relaxation
| Originally posted by : Hemant Kumar.... | ||
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Deduct the tds on bill from whom you have to get. |
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| Originally posted by : Hemant Kumar.... | ||
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Deduct the tds on bill from whom you have to get. |
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Sir, I have a doubt. For example in the above case say total bill from the agent Rs.5000/- includes Rs.500/- as commission and Rs.4500/- as charges for advertising. How can we deduct TDS? Whether u/s 194C or 194H?
What if we don't know how much commission included in the bill? Have we to deduct tax u/s 194C or 194H?
@ Vasudev Rao,Sec 194C says that deduct TDS on amount paid .
So when you r payinng to an advertising agency ,TDS should be deducted on total bill which includes amount payable to media and agency commission.
194H doesnt apply to advertising agency commission.
194H does not apply....!!! ...? Sec. applies. Please Clarify.
@ Rambabu ,when a client makes a payment either to advertising agency or advertiser sec 194C applies not 194H
| Originally posted by : CA P.Vasudeva Rao | ||
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Originally posted by : Hemant Kumar.... Deduct the tds on bill from whom you have to get. Sir, I have a doubt. For example in the above case say total bill from the agent Rs.5000/- includes Rs.500/- as commission and Rs.4500/- as charges for advertising. How can we deduct TDS? Whether u/s 194C or 194H? What if we don't know how much commission included in the bill? Have we to deduct tax u/s 194C or 194H? |
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deeply regret to note that the qualified professionals while answering are making contradictory .......comments.
In the above case every professional said the TDS has to be deducted under Sec 194C but not 194H. It's o.K. But in the examples given the TDS it is indicated the TDS has to be deducted @ 10%. When the applicable section is 194C TDS can only be 2% / 1%.
When you comment if you do not refer to sec. it conveys the applicable sec. is..........
Thank you.
in sec 194J the definition of " Professional services" includes advertising. Hope it is relevant to the discussion.
I want to Know about eTDS Reurn fill Online with RPU softwear NSDL site.[ step wise]
Please help me.
Anand Rathod [ anand_rathod16 @ yahoo.com]
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