Tds on 194 c or 194h on pamphlet insertions/distribution

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2014 Dear All,

Plz confirm on the following??

One of our client has been incurred expenditure of Rs 1 lac towards pamphlet distribution/Insertion now plz confirm is it subject to TDS or not??
if Yes will it fall under 194 C or 194 H??...

Thanks in Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 October 2014 It will fall under 194C.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 October 2014 Please tell the exact nature of service and what is mentioned in the invoice raised by service provider. Are they charging commission for distribution?

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Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2014 Nature of expenditure is towards Distribution of pamphlet i.e my client's brochers were kept inside the news paper so reader will get the brochers along with the news paper in the morning..kind of advertisment... News agency paid per brocher basis..

For example for 1 lacs brochers loacal paper distribution agency gets 1,00,000*1=1 lacs ( Rs per brocher)

Regards

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 October 2014 In the given case section 194C will be applicable.