Tds
This query is : Resolved
20 April 2012
ADVERTISEMENT ON FACEBOOK , TDS WILL BE DEDUCTED ??
IF YES HOW??
EVERYTHING IS DONE ONLINE.. PAYMENT IS MADE THROUGH CORPORATE CREDIT CARD.
PRACTICALLY NOT POSSIBLE TO DEDUCT TDS>>
KINDLY CLARIFY
IF YES HOW??
EVERYTHING IS DONE ONLINE.. PAYMENT IS MADE THROUGH CORPORATE CREDIT CARD.
PRACTICALLY NOT POSSIBLE TO DEDUCT TDS>>
KINDLY CLARIFY
20 April 2012
U need to remit less amount online and by deducting TDS on such payment. First of all see applicability of TDS since u have not mentioned the amount.
20 April 2012
dealing is in crores. are u shure ..
PAYMENT IS BASED ON NUMBER OF CLICKS. INVOICE IS RAISED IN DOLLARS , AND THE SAME IS PAID.
PAYMENT IS BASED ON NUMBER OF CLICKS. INVOICE IS RAISED IN DOLLARS , AND THE SAME IS PAID.
20 April 2012
Is it a foreign payment???
20 April 2012
facebook ofc is based in ireland
so billing in dollars
and payment by credit card
when card statement comes , amt wih rate is shown and converted in indian rupee.
and the same is entered in books of accounts
so billing in dollars
and payment by credit card
when card statement comes , amt wih rate is shown and converted in indian rupee.
and the same is entered in books of accounts
20 April 2012
Based on the information given by u and to the extent of my knowledge, it is a foreign payment and u have to deduct TDS. If u have not deducted TDS, then gross it up and u should bear the cost.
20 April 2012
it will be a great help
if u explain with example
like if we have made payment of 1250/ than how it will be dealt ??
if u explain with example
like if we have made payment of 1250/ than how it will be dealt ??
20 April 2012
Assume that u have paid Rs. 1,250 as to FB. Assuming TDS rate is 10% as per Sec 195 (it depends on country to country and as per DTAA with that country). Then the amount paid by u will be treated as 90%.
If 90% = Rs. 1,250
100% = Rs. 1,250/.9 = 1,388.
Then the entry will be as below.
Advertisment Cost A/c Dr 1,388
To FB A/c 1,250
To TDS Payable A/c 138
I would like to give details of a case law in case of payment made through LC.
Assume that u have taken a LC for foreign payment, then u will pay to the banker and the banker will pay to the Foreign Vendor.
Hence, it is not a foreign payment.
However, in case of a credit card payment, it is as good as u have given a cheque in USD and the banker is just honouring the payment on ur behalf.
Trust this clarifies u.
If 90% = Rs. 1,250
100% = Rs. 1,250/.9 = 1,388.
Then the entry will be as below.
Advertisment Cost A/c Dr 1,388
To FB A/c 1,250
To TDS Payable A/c 138
I would like to give details of a case law in case of payment made through LC.
Assume that u have taken a LC for foreign payment, then u will pay to the banker and the banker will pay to the Foreign Vendor.
Hence, it is not a foreign payment.
However, in case of a credit card payment, it is as good as u have given a cheque in USD and the banker is just honouring the payment on ur behalf.
Trust this clarifies u.
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