TDS RATE

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2010 WHETHER IN CASE OF ADVTG. AGENCIES TAKING HOARDING SITES ON RENT FOR A PARTICULAR PERIOD ON SUM AS AGREED ON PER MONTH BASIS. AT WHAT RATE TDS IS TO BE DEDUCTED FOR MAKING THE ABOVE PAYMENT BY ADVTG. AGENCIES? WHETHER IT WILL FALL U/S 194C @1% OR U/S 194I @10%? PLS. GIVE CITATION OR DETAILS OF BOARD CIRCULAR IF ANY IN SUPPORT OF YOUR ANS.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 October 2010 My view, TDS need to deduct sec.194C, Advertising in any form is contract only, it will not come under 194I

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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29 October 2010 My understanding is 194I attracts ,why because Circular 715 dated 8/8/1995 says, if a personn takes a particular space on rent and thereafter sublets the same fully or in part for putting up hoardings he would not be liable under section 194C.

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taxindiaconnect

taxindiaconnect (Expert)
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29 October 2010 Agreed with BC Sir

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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30 October 2010 Agreed with Chackrapani Sir, as the party takes the Hoardings on rent & then he sublets the same under advertising contract.

So the first case will fall under 194I. The sublet case will come under 194C.