TDS ON ADVERTISEMENT

This query is : Resolved

deepika (Querist)
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27 June 2011 THERE IS A CONTRACT WITH ADVERTISING CO OF RS 100000 FROM DEC 10 TO NOV 11 REPAYMENT IN 4 EQUAL INSTALLMENTS.FIRST PAYMENT OF 25000 IS MADE ON 1 DEC 2010.AND EXPENSE OF 4 MTHS i,e, 33333 IS MADE DUE ON 31/3/11..IS TDS APPLICABLE IN THE YEAR 2010-11..WHAT WILL BE THE TREATMENT IF WE TREAT IT AS DEFERRED EXP..WILL TDS APPLICABLE IN SUCH CASE...PLZ RPLY..

CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)
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28 June 2011 Yes TDS is applicable U/s 194C..... TDS liability will remain the same even if it is treated as deferred exp.

Rate of TDS will 1% if advertisement exp is payable to non corporate person otherwise it will be 2%

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deepika

deepika (Querist)
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29 June 2011 but why..total payment this year is 25000.. and total amt due for this year is 33333 i,e less than 75000..i think it should be applicable from second year..not in this year..plz reply..

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