TDS on Recovery/Summon Notice given by Add agency in newspap
This query is : Resolved
22 June 2009
We are a Bank. We have to pay a add agency which has given a Summon Notice in Newspaper for Recovery of a Debt on our behalf & now we have recived a bill for the same together with the paper cutting of the summon notice.
Should we deduct TDS under 194C or 194J for this payment to add agency.
Should we deduct TDS under 194C or 194J for this payment to add agency.
24 June 2009
Kindly revert
27 July 2025
Good question! Here's how TDS applies in your case regarding payment to an ad agency for publishing a **Summon Notice**:
---
### Nature of Payment:
* The ad agency has published a **Summon Notice** in a newspaper **on behalf of your bank**.
* This is a **service provided by the agency** (advertising/publicity services).
* You have received a bill from the agency for this service.
---
### Which TDS Section Applies?
* **Section 194C** covers payments to contractors for work including advertising contracts.
* **Section 194J** covers professional fees, technical services, and royalties.
* **Advertising services** generally fall under **Section 194C** because it is treated as a contract for work.
---
### Therefore:
| Payment Type | Applicable TDS Section | Rate of TDS |
| ------------------------------------------------- | ---------------------- | ----------------------------------- |
| Payment to ad agency for publishing Summon Notice | Section 194C | 1% (if individual/HUF), 2% (others) |
---
### Additional Notes:
* Since the payment is for **advertising services (contractual service)**, deduct TDS under **Section 194C**.
* Rate depends on the type of deductee:
* **1% for Individual/HUF**
* **2% for others (e.g., company, firm)**
* Ensure the ad agency’s **PAN** is obtained for correct TDS rates.
---
### Summary:
You should **deduct TDS under Section 194C** on the amount payable to the ad agency for publishing the Summon Notice.
---
If you want, I can help you with the **TDS deduction entry and filing process** for this payment!
---
### Nature of Payment:
* The ad agency has published a **Summon Notice** in a newspaper **on behalf of your bank**.
* This is a **service provided by the agency** (advertising/publicity services).
* You have received a bill from the agency for this service.
---
### Which TDS Section Applies?
* **Section 194C** covers payments to contractors for work including advertising contracts.
* **Section 194J** covers professional fees, technical services, and royalties.
* **Advertising services** generally fall under **Section 194C** because it is treated as a contract for work.
---
### Therefore:
| Payment Type | Applicable TDS Section | Rate of TDS |
| ------------------------------------------------- | ---------------------- | ----------------------------------- |
| Payment to ad agency for publishing Summon Notice | Section 194C | 1% (if individual/HUF), 2% (others) |
---
### Additional Notes:
* Since the payment is for **advertising services (contractual service)**, deduct TDS under **Section 194C**.
* Rate depends on the type of deductee:
* **1% for Individual/HUF**
* **2% for others (e.g., company, firm)**
* Ensure the ad agency’s **PAN** is obtained for correct TDS rates.
---
### Summary:
You should **deduct TDS under Section 194C** on the amount payable to the ad agency for publishing the Summon Notice.
---
If you want, I can help you with the **TDS deduction entry and filing process** for this payment!
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