Tds comlpiance while making payment of google adword

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2011 while going through accounts of a Pvt. Ltd. company , it has been observed that huge expenses were made in context of payment to Google for Advertisement hoisting on its site.
is it mandate to deduct TDS in case of such payments?
If so,,, then at what rate and under which section
pls clearify in detail

Preety Parik

Preety Parik (Expert)
Follow

12 August 2011 Expenses are in nature of advertisement, TDS u/s section 194C will apply, rate of TDS 2 per cent.

Querist : Anonymous

Querist : Anonymous (Querist)

15 August 2011 but when i checked the same on google site i found the rate as 1.13%
could anyone help me out in resolving the issue?

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

15 August 2011 but when i checked the same on google site i found the rate as 1.13%
could anyone help me out in resolving the issue?

Preety Parik

Preety Parik (Expert)
Follow

15 August 2011 The calculation 1.13 = 1% TDS+ 10% Surcharge +3% Education cess. Check for Ammendments in Finance Act, 2009, TDS is not applicable on Surcharge and Cess. Also due the ammendments, TDS on advertising works is at par with other works and the TDS rate is 2% if the deductee is company.

Message likes : 1 times