TDS Deduction Rate

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2011 We are a advertising agency company.
Our sister concern is a beta film editing studio - rendering ad film making etc.

Regularly we (Ad Agency)give ad film works to them (sister Concern), which we receive from our clients.

Now actually at what rate, we have to deduct tds on our sister concern?

Our Sister Concern always raise a bill as lumpsum.

for your information till last year we have deducted tds on them at professional fees rate

Can we (ad agency) make a contract agreement between us and sister concern and deduct tds on Contract rate basis?
is it correct. if yes, the contract can be made in Rs.20 stamp Paper?

Please clarify

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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24 January 2011 I think in this case TDS is to be deducted on payment u/s 1974C. You can be part of contract, but it is not compulsory.

Value of stamp paper change state to state, as per the value of contract.

Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2011 Sir,

The Section you mentioned to my querry is 1974C?????
Is the section number is correct.

any professional can help me please

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