CA Indu Rani (CA ,CS Inter,M Com) (135 Points)
03 September 2010
Public company is making a sponsorship payment to an Institute, will there be any Tax deduction at source ???????
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 03 September 2010
ponsorship agreement is in teh nature of advertisement contract.
Hence 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 No.715 dt.8-8-1995]
CAclubindia
