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applicability of TDS

Venkatesh Gupta (Jr. Manager Finance) (77 Points)

04 July 2008

Dear friends,

1. Please let me know the natureof contract between print media and advertising agent?

2. What is the rate of TDS applicable on payment made by and advertising agent to print media? Is it @ 1% or regular contract of 2%?

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6 Replies

(Guest)

Hi Friends,

This is know about the provisions of section 194I of I.T Act read with circular 715 dt 08-08-1995.

Our company has taken the office premises in I.T. Park on rent from another company. MSEB has placed a meter for entire I.T. Park and accordingly generate the single electricity bill in the name of landlord. Lanlord pays the electricity charges directly to the MSEB and claims the reimbursement from all the tenants as per thier usage units. To identify those usage units, lanlord has instatted separate meters for different office units.

As per provision of 194 - I, TDS has to deducted on Rent Income andcircular I 715 refers to section 194C & 194J only.

Please guide on the definition of Rent and let me know whether reimbursements are covered in 194 - I.

Thanks,

Tejashree

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pramodjalandra (Account Administrator) (142 Points)
Replied 04 July 2008

hahahah

naveen jain (Chartered Accountant) (57 Points)
Replied 04 July 2008

dear

If u read 194J clearly from ACT there is clearly define Advertisment should consider under profession so rate of tds applicable as per 194J

Venkatesh Gupta (Jr. Manager Finance) (77 Points)
Replied 05 July 2008

Mr. Jain

Read the question what i asked. If agency apid any changes to models and all professionals comes under 194J Baba. I asked payment made by advertisement agency to print media to get the work done. Got it?