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Very Urgent...TDS on exhibition services..

jamsheed (CA) (61 Points)

11 December 2009

i want to know whether tds is deductible when a payment is made to organisers of a business exhibition towards providing a stall for participating in the exhibition.if yes whether U/s 194c or u/s 194i. thanks in advance

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3 Replies

FATEMA (CHARTERED ACCOUNTANT) (719 Points)
Replied 11 December 2009

Jamsheed,

Tax is deductible u/s 194C.

Providing a stall for participating in the exhibition is a type of advertisement which will enhance your sales.TDS on advertisement is deducted u/s 194C

As there is no landlord-tenant relationship between the vendor and the vendee, it does not fall under the definition of rent as given by 194I and hence 194I is not applicable.

Kriti (Article Assitant) (106 Points)
Replied 27 February 2014

Dear Fatema

I think TDS will be deducted u/s 194I @ 10%.

As per sec 194I

"rent" means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,—

(a) land; or

(b) building (including factory building); or

(d) machinery; or

(e) plant; or

(f) equipment; or

(g) furniture; or

(h) fittings,

whether or not any or all of the above are owned by the payee

In case of exhibition, assessee is himself going and advertising, he is not paying amount for advertising, instead he is paying for the space provided to him i.e. kind of rent. Therefore, I think TDS will be deducted u/s 194I instead of 194C.