sachin konde (ACCOUNTANT) (30 Points)
25 January 2017
Baljeet Singh
(CA, B.Com (H))
(954 Points)
Replied 25 January 2017
Hi Sachin,
For us to accurately answer your query, could you tell us the complete name of the company which raises the advertising bill to you.
This is needed to determine whether the company is registered in India or outside India.
Also, is there any Service Tax charged from you?
Please share. Thanks.
sachin konde
(ACCOUNTANT)
(30 Points)
Replied 25 January 2017
| Originally posted by : sachin konde | ||
| If I pay for facebook ads through my company credit card, how do i account for Tax Deduction at Source? The billing for facebook is done from Ireland. But how do I deal with depositing the TDS deduction in India?The Advertising company is "Facebook" They are not register in india |
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Baljeet Singh
(CA, B.Com (H))
(954 Points)
Replied 25 January 2017
In this case CBDT has introduced an Equalization Levy on payment by Indian Resident, for Advertisement services, to a Non-resident service provider.
This is to be paid at 6% from over and above the bill. This means that you personally will have to bear the cost of equalization levy.
There is a separate challan viz. Challan No./ITNS 285 for the same.
Kindly refer the following files for more info:
https://www.pwc.in/assets/pdfs/news-alert-tax/2016/pwc_news_alert_1_june_2016_cbdt_notifies_equalisation_levy_rules_2016.pdf
https://www.ey.com/Publication/vwLUAssets/Template_Equalisation_Levy_Alert.pdf/$FILE/Template_Equalisation_Levy_Alert.pdf
https://www.charteredclub.com/equalisation-levy/
CA Priyanka Kushwaha
(Chartered Accountant)
(1072 Points)
Replied 26 December 2019
Please refer to the below link:
Gaurab Das
(Internet Marketing)
(8 Points)
Replied 24 June 2020
Regarding Equalization Levy for Facebook / Google /Bing Ads in India.
Do we need to pay Equalization Levy even if we run ads from Indian FB / Google /Bing ads account and incur GST in invoice. .
As per various Internet sources (ex reference video below ) , Its mentioned that FB /Google/Bing doesn't have permanent establishment (PE) in India and are subsidiaries in India ...So we need to pay Equalization levy @ 6% direct tax if ad expense exceeds 100000.
https://www.youtube.com/watch?v=h4aDVCAzJWI
Please let me know your take
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