Relevant TDS Section

This query is : Resolved

Sravani (Querist)
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31 March 2009 Hi,

Can anyone tell me which TDS section is applicable for payment in respect of Public Relation Service?

Is it 194J or 194C?

Please answer this query as early as possible.

Thanks in advance.

Taranjit Singh

Taranjit Singh (Expert)
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31 March 2009 PUBLIC RELATIONS SERVICE

“public relations” includes strategic counseling based on industry, media and perception research, corporate image management, media relations, media training, press release, press conference, financial public relations, brand support, brand launch, retail support and promotions, events and communications and crisis communications; (section 65(86c) of the Finance Act, 1994)

“taxable service” means any service provided or to be provided to any person, by any other person, in relation to managing the public relations of such person, in any manner (section 65(105)(zzzs) of the Finance Act, 1994) Value of Taxable Service: The value of taxable service shall be the gross amount charged by the service provider for providing such service and the money value of any other consideration ( if any) received for providing such service. The value of taxable service shall be determined as per the provisions made under section 67 of the Finance Act, read with Service Tax (Determination of Value ) Rules, 2006

Taranjit Singh

Taranjit Singh (Expert)
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31 March 2009 SECTION 194J
Deduction of tax at source - Fees for professional or technical services
Visit This Link, So this service should be covered under setion 194J. But if you have different views please reply me.....

http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2001ITAct/Circulars2001/cirsec194J.htm

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CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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31 March 2009 Seems to Be 194J only.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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31 March 2009
Section 194 J deals with fees for professional or techncial services.

Section 194 C deals with any type of contracts.

In your referred case you have mentioned payment is for Public relation service.

As per the income tax act Profession or technical services should be backed up by professional or technical qualifications as recognised by the body created under law.

Since Public relation service is not falling under the purview of profession or technical service automatically it will fall under general contracts.

Therefore Section 194C is applicable in your above referred case.