Practicing in GST and MSME
1985 Points
Joined September 2010
As per normal provisions of section 194C, deduction of TDS by Chate Classes is absolutely right @ 2% and TDS should also be deducted on payment by X ltd to DNA because there is a contract between x ltd and DNA in which DNA provides ADVERTISEMENT WORK to x ltd.
The difinition of WORK as per section 194C also includes Advetisement.
So TDS should be deducted on Rs.100000 @ 2%.
NOTE- If there is any special circular or case law regarding the fact "TDS provisions are not attracted when an advertising agency makes payment to the publisher" , then that is not known to me. If you come to know, please share.
REGARDS
CA SUNNY AGGARWAL