TDS on Advertisement
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 March 2011
Dear All,
We are paying Rent of Municipal Poles on which our Flex printings advertisements are displayed. The advertising agency is charging Rent @ ...Rs. from us. I doubt whether TDS should be deducted U/s 194C or 194I and need some help of you guys in reaching a conclusion. Poles doesn't seem to fit into any rental definition u/s 194I.
Regards
Kanwal
We are paying Rent of Municipal Poles on which our Flex printings advertisements are displayed. The advertising agency is charging Rent @ ...Rs. from us. I doubt whether TDS should be deducted U/s 194C or 194I and need some help of you guys in reaching a conclusion. Poles doesn't seem to fit into any rental definition u/s 194I.
Regards
Kanwal
25 March 2011
Question no. 3 of circular 715 of 1995 should be able to help you. TDS should be deducted @1% u/s 194C as the payment is made to the advertisement agency. I guess concessional rate of 1% is kept for advertisement contracts keeping in mind such kind of expenses incurred by advertising agencies.
26 March 2011
Now a days no special concession is given to advertisers. It is 1% for Individual/HUF and 2% in other cases.
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 March 2011
Thanks Experts,
My query is resoved. Thanks to All !
My query is resoved. Thanks to All !
26 March 2011
Flex which is fixed in a public place and the advertising agency charging a monthly expense will not be treated as rent, even if it part take the character of rent.
The reason for exluding the same is it is specifically excluded in section 194 C,
However, the term "work" as mentioned u/s 194 I is general in nature and can encompasses the above transactions as Advertisement contract,
Rate
Individual and HUF 1 %
Others 2 %
The reason for exluding the same is it is specifically excluded in section 194 C,
However, the term "work" as mentioned u/s 194 I is general in nature and can encompasses the above transactions as Advertisement contract,
Rate
Individual and HUF 1 %
Others 2 %
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