Tds on advt. exp.

This query is : Resolved

DEEPAK GUPTA (Querist)
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08 February 2014 If the abc Pvt Ltd Company has incurred advertisement exp on behalf of its dealers and the dealer pays his share to the company and debit advertisement expenses.
The Pvt Ltd company has deducted TDS on Advt. exp.
Whether provisions of TDS u/s 194C is applicable to the dealer? Whether Dealer is also required to deduct Tax at source while making payment to Pvt Ltd Co. ?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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08 February 2014 Who has advertised? It is the company and not the dealers and the dealers have contributed their share either 5 or maximum 10%. So the dealers need not deduct TDS simply dealers can procure a certificate from the company that they have deducted TDS against advertisement and paid the same on ....date copy of challna enclosed. You can claim your share as advertisement expenses