We are running a partnership firm. There is a bill of advertisement in newspaper of Rs. 91,100.
Basic amount :- Rs. 1,00,000
less discount :- Rs. 11,000
Service Tax:- Rs. 2,100
Grand Amount:- Rs. 91,100
Bill is raised by Private Limited company. Here my question is how much we need to deduct as a TDS (2% or 1%) and on what amount.
Since, amount exceeds the limit hence tds will be applicable @ 2% on 89,000/- only ( exclusding S.Tax) if it is shown separately.
TDS Deduction for Newspapers in India is applied at 1% when payable to an advertising agency. We have been following this protocol across our client base - for all print newspaper ads across Times of India, Hindustan Times, The Hindu etc.
Hope this helps.
Sharad
www.releasemyad.com
CAclubindia
