Professional services

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Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2015 Hi,

The work also includes advertising ( 94C) and
Professional services (94J) also includes advertising...

Can any one clarify..advertising is applicable under 94C or 94J. Please explain in details.

Thanks & Regards
Bala

CA ANILKUMAR B.COM FCA DISA

CA ANILKUMAR B.COM FCA DISA (Querist)
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22 January 2015 Sec 194C specifies' in pursuance of a contract b/w the contractor and the specified person'. So there should be a valid contract. But under 194J there won't be a contract .

CA Anjana Grover

CA Anjana Grover (Expert)
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22 January 2015 Under Section 194C the work on which TDS need to be deducted includes only the following :

Broadcasting and telecasting including production of programmes for such broadcasting or telecasting

Where as rest of advertisement services are covered under section 194J.

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CA ANILKUMAR B.COM FCA DISA

CA ANILKUMAR B.COM FCA DISA (Querist)
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22 January 2015 That's one of the Item comes under works. Please read section .

CMA MALHAR BEHERA

CMA MALHAR BEHERA (Expert)
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22 January 2015 Circular: No.715, Dated 8/8/1995.

The term ‘advertising’ has not been defined in the Act. During the course of the consideration of the Finance Bill, 1995, the Finance Minister clarified on the Floor of the House that the amended provisions of tax deduction at source would apply when a client makes payment to an advertising agency and not when advertising agency makes payment to the media, which includes both print and electronic media. The deduction is required to be made at the rate of 1 per cent. It was further clarified that when an advertising agency makes payments
to their models, artists, photographers, etc., the tax shall be deducted at the rate of 5 per cent as applicable to fees for professional and technical services under section 194J of the Act.

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2015
As per the income tax act, the professional services defined as given below. As per this the advertising included in professional service. The same is included in " Work " also..What are the differences between the both definitions

(a) "professional services" means services

rendered by a person in the course of carrying on legal, medical,engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified

Thanks