TDS on sponsorship, Income Tax

[sanjay gupta]

Our company paying sponsorship payment to an association. Whether tds is applicable u/s 194C or not?

Similarly we are participating in exhibition etc. The payment of participation fee is also liable for tds u/s 194C. pl. clarify.

Posts / Replies

[Ganeshan Kalyani]

Sponsorship is an activity which is in the nature of Advertisement and therefore, TDS is required to be deducted under section 194C.

Participation fee is not for any service to be received. It is just a kind of permission sought to participate in the exhibition and therefore in my view TDS should not be deductible in this case.