Hi,
We are Digital marketing company in which we provide online advertising services to the clients and charge them for Media Spends plus Agency fees.
For Media Spends i am clear that TDS will get deducted @ 2% as per section 194c (7) (iv)(a). However, i am confused about Agency fees whether it will be 194c, 194j or any other section.
Please note we provide recurring services to clients.
Thanks in advance.
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Replies (6)
Yes....You are exactly correct for media spends...
On Agency fees
if it's commission based then TDS u/s 194H...
If it's professional fee then TDS u/s 194J...
On Agency fees
if it's commission based then TDS u/s 194H...
If it's professional fee then TDS u/s 194J...
Thank you for your revert! It is not commission/brokerage. It can be termed as professional fees but actually it is recurring services which we provide to them. Will it go under 194c services?
Mayank , it will be a part of advertising services contract and hence apply 194C
What you are charging is not at all Commission/brokerage as you are not acting on behalf of anybody.
It is your service charges may be on %age of bill amount or based any other mode. That's part of your contract terms with the advertiser.
So apply 194C and not 194J .
What you are charging is not at all Commission/brokerage as you are not acting on behalf of anybody.
It is your service charges may be on %age of bill amount or based any other mode. That's part of your contract terms with the advertiser.
So apply 194C and not 194J .
Great... Thank you Pravin. I am also of the same opinion.
Yes... I agreed also if it's not professional services or Commission/Brokerage.
Yup, Thank you so much Raja for the help
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