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TDS on sponsership fee

05 February 2010

Being a company, should I deduct tax on sponsership fee paid to FiCCI for delivering some lecture by a delegate, and if yes, under which section, at what rate.

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Amir (Learner) (4016 Points)
Replied 05 February 2010

Dear Pankaj,

In the case of sponsorship for debates, seminars and other functions held in colleges, schools and associations with a view to earn publicity through display of banners, etc., put up by the organisers, the agreement of sponsorship is in essence an agreement for carrying out a work of advertisement. Therefore, provisions of section 194C will apply. - Circular 715

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CA. ANKUR (ASST. MANAGER ACCOUNTS) (54 Points)
Replied 05 February 2010

Dear CA. Pankaj

I think what you want ask is whether to deduct TDS to be deducted on fees charged by FICCI on LEctures delivered by the delagate of FI CCI to you company. Then it si not a case of Sponsorship it is a professional services & You must Deduct TDS U/s 194 j @ of 10%.

In case it is sponsorship then you must deducted TDS u/s 194 C under advertising then TDS @ 2 % should be deducted.

Do clarify what actually the expense is for.

CA Pankaj Bansal (Manager) (82 Points)
Replied 05 February 2010

Originally posted by : CA. ANKUR
	Dear CA. Pankaj I think what you want ask is whether to deduct TDS to be deducted on fees charged by FICCI on LEctures delivered by the delagate of FI CCI to you company. Then it si not a case of Sponsorship it is a professional services & You must Deduct TDS U/s 194 j @ of 10%. In case it is sponsorship then you must deducted TDS u/s 194 C under advertising then TDS @ 2 % should be deducted. Do clarify what actually the expense is for.

Actually Ankur, its a Joint Business Meeting organised by FICCI in honour of PM of Malaysia who came here with few Business delegates and our company consented to be an associate sponser in the business interest of company.