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Tds on online marketing companies

durgaprasad (accounts executive) (225 Points)

08 July 2016

I need a some clarifications about the tds on online marketing companies. One of online company has marketing of hotel products. They collected the prepaid amount from guest at the time of booking, afterthat they deducted their commission and balance amount deposited into our account. In this case, can we deducted the Tds on such companies. Whether 194 (C) is applicable or not. Please reply my Query ?

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2 Replies

CA Saurabh Singh (Practising Chartered ) (974 Points)
Replied 08 July 2016

Hello,

Yes TDS will be deducted but they are acting as commisiion agent hence TDS shall be deducted u/s 194H,

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durgaprasad (accounts executive) (225 Points)
Replied 09 July 2016

How can we deducted the TDS amount. They remitted the balance amount to bank account and some time they deposited in an advance of precollection from customer. They Dont deposited our rack amount. If we give rack rate of Rs.1799/- with taxes (local tax and service tax). They deposited of Rs. 1511 (inclusive of all taxes). In such case, How can we deducted the TDS U/s 194 H