Tds on advertisement expenses

This query is : Resolved

sathish kumar (Querist)
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10 January 2017 Actually TDS @2% is to be deducted by company while paying amount towards advertisement expenses if it exceeds Rs.30000.
The amount Rs.30000 is paying amount or Bill Amount
Tell me that Bill amount is Rs.28500
Service Tax @ 15% is Rs.4275
total Amount is Rs.28500+4275=32775 whether TDS is to be deducted or not
Please clarify my doubt sir

Sandeep Dharar

Sandeep Dharar (Expert)
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10 January 2017 In the above case TDS should not b deducted. The reason behind this is TDS is deducted exclusive of Taxes, i.e, on Gross amount(only if the amount exceeds the limit mentioned under respective section). TDS is deducted u/s 194C, for advertisement, the limit is 30K single bill and 1 L annually and as per ur case the amount is not exceeding 30K, so TDS should not b deducted.