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This query is : Resolved

madhu (Querist)
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17 September 2012 A person made payment to an advertising agency who is the agent on behalf of the advertising media.

the agent will receive the payment from the person and the agency will repay the amount to advertising media.

in this case whether tds provisions attracts in the following situations??
1.between person and agency
2.between agency and media

if the person directly pays amount to media whether it would atrract tds or not??

please clrify

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 September 2012 In either case only the ultimate person who is receiving income will attract TDS, that is who is receiving the income. agent should deduct the TDS while making payment and the same will be adjust and get back from the payer. so agent will not attract tds unless the bills or payment made in the name of agent or in payment any commission component included