Tds on advertisement

This query is : Resolved

vinu (Querist)
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18 October 2011 Hi ,

We (sole proprietorship) incurred a advertisement exp of Rs.5,00,000,and have made the payment to the concerned party.but we have not deducted TDS on the same.This is about three months ago.Now can we deduct tds on the payment made.If so,then how and whats the fine on it?

CA VISHAL RANA,CS,B.Com,AMFI

CA VISHAL RANA,CS,B.Com,AMFI (Expert)
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18 October 2011 VINU YOU ARE REQUIRED TO DEDUCT TDS U/S 194C CONTRACT FOR ADVERTISEMENT WHEN PAYMENT IS MADE OR CREDIT IN THE A/C OF PAYEE...WHICHEVER IS EARLIER....YOU CAN DEDUCT TDS NOW IF YOU NOT MADE PAYMENT

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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18 October 2011 You can raise a debit not to the vendor for the tds amount and the same can be deposited to govt with interest.

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CA PRAVIN

CA PRAVIN (Expert)
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18 October 2011 You can deduct TDS now u/s 194C and deposit it to Govt. But if it is the last transaction or only one transaction with the party then u have to pay the TDS from your own pocket and this extra amount will not be allowed as an expense.