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Advertising payment made without deducting TDS

Rahul Patel (Student CA Final ) (23 Points)

07 June 2022

If the assesse has made a payment to Google India for its advertisement of its firm and had left out to deduct TDS U/s. 194C, then what can be conscious of not deducting TDS on that payment being made to Google India.

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9 Replies

Kesavaraj S (578 Points)
Replied 07 June 2022

You have to pass a TDS entry in your book and make the payment for next transaction after deducting the previous TDS amount and pay Outstanding TDS amount along with interest...

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Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 08 June 2022

If payment is made though automated process then you may have to discuss with the payee.

CA Rashmi Gandhi (Chartered Accountant) (86313 Points)
Replied 08 June 2022

Such expenditure will be disallowed u/s 40(a)(ia)

3 Like

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 08 June 2022

@ Rahul Patel ,

For which month it is ?

CA Rashmi Gandhi (Chartered Accountant) (86313 Points)
Replied 08 June 2022

No need for month detail in this Query

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CA Rashmi Gandhi (Chartered Accountant) (86313 Points)
Replied 08 June 2022

@ Eshwar Reddy Why you go always out of query

CA Puja Sharma (Chartered Accountant) (4995 Points)
Replied 08 June 2022

30% of the expenditure will be disallowed under Section 40(a)(ia) of the Income Tax Act, 1961, due to the non-deduction of TDS.

Further, if you get Form 26A from that, you are not an assessee in default and google India has given the whole of the income for taxes; you can save the disallowance.

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 08 June 2022

@ Ca Rashmi,

If it is for April 2022 , then you have 1 year time for ITR Filing. So disallowance has no relevance at this moment.

Hope you understood now.