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Tds on amount paid for advertisment on metro pillar

@mit. (CA Final) (270 Points)

07 January 2014

If we are paying amount for Advertisement on Metro Pillar under a contract for 3 months on monthly basis.

Please tell me whether TDS is deducted u/s 194C or 194I?

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10 Replies

GAUTAM SHARMA (Audit Assistant) (353 Points)
Replied 07 January 2014

TDS is applicable u/s 194C.Works include advertisements

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Mihir (Wealth Manager) (5293 Points)
Replied 07 January 2014

It not renting, it is advertisement. So 194C will apply.

SRINIVASAN (Sr.Commercial Manager ) (21 Points)
Replied 07 January 2014

pls note 194 c

Rupesh Soni (Taxation Consultant & CA final student) (504 Points)
Replied 07 January 2014

194C applicable as Advertismnt is inc in contract @ 1%

@mit. (CA Final) (270 Points)
Replied 07 January 2014

Hello Guys,

But they are showing Rental of Metro Pillar for Advertisement in their Invoice, I have not told this earlier becoz.. they will change the Invoice and show it as Display of Advertisement But whether it affects the Facts of the case. I check out many Posts ... each person has different views... and after reading there facts .. I just find out that they are both correct in there views.

Not got the Perfect answer.

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CA KARAN MAINI (Practising CA) (106 Points)
Replied 07 January 2014

Hello friends, the objective of advertisement on metro pillar is to make the product or services of business of the payer. It is sales promotion activity.But it can not be said as renting of metro pillar.Renting of asset means permitting the license to use asset. TDS shall be deducted us 194C @ 1% or 2%.