17 February 2011
Whether T.D.S. will be deducted on advertisement where bill is for more than Rs. 20000/- but payment is made in parts for Rs. 10000/- and above ? If the answer is yes then whether it is possible to claim deduction of expenditure without deducting T.D.S. ? Is there anyway? The query pertains to the assessment year in which limit for deduction of T.D.S. in advertisement was Rs. 20000/-
17 February 2011
Payment for advertisement is covered u/s 194C.
As per 194C, Tax is required to be deudcted where the amount excedds Rs.30000/- in a single payment or Rs.75000/- in the aggregate during the financial year.
You have not mentioned the amount of bill, if it is more than 300/- you have to deduct TDS.
Payment of bill in tranches does not change the decision.
17 February 2011
Present thershold limit in section 194C is Rs.30000 on payment and Rs.75000 on bills so Advertisement covered under sec.194C. so your cash TDS not applicable
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