We are dealers of mahindra & hero
Mahindra & Hero do advertisment at corporate level and charges all dealers for this
do we need to deduct tds on it
7 Replies
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 15 October 2012
2% is for corporate and 1 % for individuals and HUF
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 15 October 2012
just remember
,if single bill payment of advertisement is Rs 30000..of above or overall anually payment is Rs 75000 or above,then only question of TDS will arise,otherwise not.no tds is deducted..
and if the agency does not furmish pan TDS rate applicable is 20%
CA Ankit Bhutoria
(CA )
(372 Points)
Replied 15 October 2012
but there is no contract between our company & Mahindra or Hero
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 15 October 2012
Under section 194C, the tax is to be deducted when a contract was entered into for carrying
out any work in pursuance of a contract between the contractor and the entities mentioned in
sub-section (1) of section 194C. In the present case, there was no contract between the
assessee and the co, to carry out any work. On the other hand it can be as a case of reimbursement of expenses..in case of reimbursement,there is actually no income in the hands of recepient..
hence if we go by this no TDS has to be deducted..
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