Tds on sponsorship

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2014 Dear Sir ,

We given Sponsorship of Maharashtra Times Planet Campus to The Times Group they submit Proforma Invoice for Rs.1,50,000.00 is TDS applicable & If Yes @ what % & Under which Section ?

Kindly explain .....

Its very urgent.................

Sandeep Dharar

Sandeep Dharar (Expert)
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17 June 2014 As per me TDS is applicable u/s 194J. the Rate is 10%.(exclusive of Service Tax).

Well, other Experts views r also important.

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2014 Dear Sir ,

Is it Confirm because I have to Pay the Bill amount ?

Kindly explain.......

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Sandeep Dharar

Sandeep Dharar (Expert)
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17 June 2014 According to me it is confirm. Can u elaborate Times group is engaged in in that purpose(i.e, sponsorship) only?

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2014 Dear Sir ,

As I Discuss with our Auditor TDS 2% U/s 194c

Kindly explain....

Sandeep Dharar

Sandeep Dharar (Expert)
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17 June 2014 Thats what I asked u above that if the Company is engaged on that service only?

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2014 Dear Sir ,

No The Times Group publishing News Paper also & other Activity under "The Times Group"

Sandeep Dharar

Sandeep Dharar (Expert)
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17 June 2014 If they are not specialist in that field then TDS will b deducted u/s 194C. The limit is 30K single Bill and 75K in the year.

Rate:-

Ind/HUF - 1%
Others - 2%.

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CA Jitender Sharma

CA Jitender Sharma (Expert)
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17 June 2014 Circular : No. 714, dated 3-8-1995
In the case of sponsorship for debates, seminars and other functions held in colleges, schools and associations with a view to earn publicity through display of banners, etc., put up by the organisers, the agreement of sponsorship is in essence an agree ment for carrying out a work of advertisement. Therefore, provi sions of section 194C will apply.

Accordingly 2% tds rate will be applicable.

Rupesh Jain

Rupesh Jain (Expert)
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20 June 2014 r/sir

tds deducted under section 194C.

@ 2% or 1% as the status of the vendor
but you may check with the vendor it may possible that they have lower deduction certificate or non deduction certificate. pls check.