16 August 2013
Sir, a company pays to it distributors & parties a certain regular amount monthly as display expenses against the shell or cupboard provided by the distributors for the display of the products of the company.whether tds should be deducted u/s 194c as advertisement or 194I as rent?. Please provide ur sugestion as soon as possible and also please provide the clause or section for the reference.
16 August 2013
It is Covered under 194I and not under 194C in my opinion which i can suport as below
1)The contract for putting up a hoarding is in the nature of advertising contract and provisions of section 194C would be applicable.
2)It may, however, be clarified that if a person has taken a particular space on rent and thereafter sublets the same fully or in part for putting up a hoarding, he would be liable to TDS under **section 194-I and not under section 194C of the Act.
"rent" means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,— (a) land; or (b) building (including factory building); or (c) land appurtenant to a building (including factory building); or (d) machinery; or (e) plant; or (f) equipment; or (g) furniture; or (h) fittings, whether or not any or all of the above are owned by the payee/contractor;]
In present case Cupboards/shell is not Land & building or Plant or Furniture & fitting as per meaning of Section 194-I
Therefore it certainly comes under preview of Section 194-C
CAclubindia
