TDS on Advertisement incurred by the franchisor

This query is : Resolved 

05 October 2009 Sirs,
A debit note has been raised by the franchisor on the franchisee regarding the expenses made by the franchisor on Advertisement. Is it liable for TDS deduction? the Franchisor is already deducting TDS of the advertising agency? should the franchisee deduct TDS on the debit note payments made to the franchiser?

05 October 2009 In no case the franchisor can be construed to be carrying the work of advertisement in pursuance of a contract, expressed or implied, for the franchisee. It is merely an expense sharing arrangement.

In my view, section 194C can not be applied to the situation.

05 October 2009 thank you sir




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