abhishreshthaa

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Important Provisions

An Advertising agency is not required to deduct tax at source out of payments made to the media.


When a client makes payment to an advertising agency and not when an advertising agency makes payment to the media, which includes both print and electronic media TDS rate is 1 per cent.



When an advertising agency makes payments to their models, artistes, photographers, actors, a cameraman, a director, etc.,



the tax shall be deducted at the rate of 5 per cent as applicable to fees for professional and technical services under section 194J of the Act.



Tax to be deducted at the rate of 1 per cent if the advertising agencies give a consolidated bill including charges for art work and other related jobs as well as payments made by them to media


The payments made to a travel agent or an airline for purchase of a ticket for travel would not be subjected to tax deduction at source as the privity of the contract is between the individual passenger and the airline/travel agent.


The provisions of section 194C shall, however, apply when a plane or a bus or any other mode of transport is chartered by one of the entities mentioned in section 194C of the Act.


The position of clearing and forwarding agents is different.


They act as independent contractors.



Any payment made to them would, hence, be liable for deduction of tax at source.



They would also be liable to deduct tax at source while making payments to a carrier of goods.
 
Important Provisions

An Advertising agency is not required to deduct tax at source out of payments made to the media.


When a client makes payment to an advertising agency and not when an advertising agency makes payment to the media, which includes both print and electronic media TDS rate is 1 per cent.



When an advertising agency makes payments to their models, artistes, photographers, actors, a cameraman, a director, etc.,



the tax shall be deducted at the rate of 5 per cent as applicable to fees for professional and technical services under section 194J of the Act.



Tax to be deducted at the rate of 1 per cent if the advertising agencies give a consolidated bill including charges for art work and other related jobs as well as payments made by them to media


The payments made to a travel agent or an airline for purchase of a ticket for travel would not be subjected to tax deduction at source as the privity of the contract is between the individual passenger and the airline/travel agent.


The provisions of section 194C shall, however, apply when a plane or a bus or any other mode of transport is chartered by one of the entities mentioned in section 194C of the Act.


The position of clearing and forwarding agents is different.


They act as independent contractors.



Any payment made to them would, hence, be liable for deduction of tax at source.



They would also be liable to deduct tax at source while making payments to a carrier of goods.

Hey abhi, thanks for sharing such a nice information on the provision of TDS. Well, i am also uploading a document where you would find the detailed notes on provision of TDS.
 

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