TDS on Advertisement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 March 2011 Dear All,

We are paying Rent of Municipal Poles on which our Flex printings advertisements are displayed. The advertising agency is charging Rent @ ...Rs. from us. I doubt whether TDS should be deducted U/s 194C or 194I and need some help of you guys in reaching a conclusion. Poles doesn't seem to fit into any rental definition u/s 194I.

Regards
Kanwal

Kartik

Kartik (Expert)
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25 March 2011 Question no. 3 of circular 715 of 1995 should be able to help you. TDS should be deducted @1% u/s 194C as the payment is made to the advertisement agency. I guess concessional rate of 1% is kept for advertisement contracts keeping in mind such kind of expenses incurred by advertising agencies.

CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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26 March 2011 Now a days no special concession is given to advertisers. It is 1% for Individual/HUF and 2% in other cases.

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Querist : Anonymous

Querist : Anonymous (Querist)

26 March 2011 Thanks Experts,

My query is resoved. Thanks to All !

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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26 March 2011 Flex which is fixed in a public place and the advertising agency charging a monthly expense will not be treated as rent, even if it part take the character of rent.

The reason for exluding the same is it is specifically excluded in section 194 C,

However, the term "work" as mentioned u/s 194 I is general in nature and can encompasses the above transactions as Advertisement contract,

Rate

Individual and HUF 1 %
Others 2 %

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