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Jishnu Surendran

Finance Manager

212 Points Posted on 14 October 2015

I have bought banners with the message ' WELCOME DR. XXXX TO OUR ORGANIZATION ON THIS AUSPICIOUS CEREMONY ' blah blah blah.....paying an amount that is above the limit u/s 194C. I don't think that transaction would be an advertisement contract as I am not advertising anything but, enlighten me if I am wrong.

Again....

I bought pamphlets that elaborates my products and its specifications, ofcourse the pamphlets are made as per my design, and then circulate it with the local news papers by keeping them inside. Which is the actual advertisement contract here ? The money I pay for printing services or to the news papers ? I believe it is the payment to the news papers.

Anyway....Anyone care to answer ?

Replies (2)

Karthik.V.Kulkarni

Chartered Accountant

766 Points Posted on 14 October 2015

This certainly amounts to advertisement. Printing of phamplet is not advertisement it is in form of works contract where as amount paid to news agency is in form of advertisement charges. Both are liable to tds u / s 194 c.

Jishnu Surendran

Finance Manager

212 Points Posted on 15 October 2015

Yeah ! we both have about the same opinion about which the advertisement contract in this transaction is but, the printing of pamphlet remains a gray area. As per 194C a contract fall under ' works contract ' only when the contractor uses materials provided by the contractee or the contractor provides labour services in addition to material sales. Thus I believe printing a pamphlet is essentially a sales contract on which VAT could be levied.

Any contradictions brother ?

What about the 'Welcome Message Banner' ?

These are real situations I am sharing.