TDS deduction by Agencies to Media house/broadcasters for media business payments

This query is : Open

Lovlesh Dwivedi (Querist)
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02 March 2023 Is 194C applicable on payments to Media houses / Broadcasters like print, television radio etc on the media buying because many media houses like Zee, Star are getting their TDS deducted at source while some media houses like TV 18 denied mentioning agency would not n deduct any TDS at source to the payment for media buying... IN Income Tax its not very much clear so it require your expert views with specific justification in this regard.

Lovlesh Dwivedi

Lovlesh Dwivedi (Querist)
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03 March 2023 Kindly suggest & reply please as an advertising agency do we deduct TDS at source on bills & payments above threshold limits U/s 194C @ 1%-2% to print, digital & Television/radio broadcasters...????

CA Sorav Gupta

CA Sorav Gupta (Expert)
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13 March 2023 CBDT in circular no. 715 dt. 8/8/1995 have clarified that there will be no TDS under section 194C on the payment by an advertising agency to the television channel/ newspaper company.

In case of any further queries, kindly mail me at casoravgupta@gmail.com

Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)

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Lovlesh Dwivedi

Lovlesh Dwivedi (Querist)
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13 March 2023 Thanks Sorav ji but as per other Consultants the said Notification was on 1995 (almost 27 years) after that IT department included almost very services under TDS / TCS. Agencies do not deduct any TDS while on payments they receive the payments after corresponding deductions.. Moreover other TV Channels, Radio Partners, Magazines, Print etc do not object or have issues in their deductions. Even last year also the department notified to take undertakings with the vendors u/s 206AB & 206CCA failing which we should deduct TDS on higher rates. I think if anybody require a relaxation from TDS deduction they should produce No deduction Certificate from department U/s 197...