TDS Applicability on Charges for Censor Certification Services, Income Tax

[Ramanathan Seshan]

Dear Experts,

We engage a company to handle the documentation and processing required for obtaining censor certification for our advertisements and promotional content. Kindly advise whether TDS is applicable on the service charges levied by such a company. If applicable, under which section of the Income Tax Act should the deduction be made?

Regards,

S Ram

Posts / Replies

[YAGAY andSUN]

Yes, TDS is applicable on the service charges paid to a company engaged for documentation and processing of censor certification for advertisements and promotional content.

🔍 Nature of Service:

This activity typically involves:

• Preparing documents
• Liaising with authorities like the CBFC (Central Board of Film Certification)
• Coordinating approvals
• Submitting applications, and
• Possibly consulting on compliance aspects

Though not a legal representation per se, it involves technical and professional expertise related to regulatory compliance.

✅ Applicable Section of the Income Tax Act:

Section 194J – TDS on Fees for Professional or Technical Services

• Applicable to:
  • Professional services (legal, consultancy, etc.)
  • Technical services
  • Services involving specialized knowledge, skill, or experience

Since the company is providing specialized assistance for regulatory compliance and certification — an area involving expertise and procedure — this qualifies as professional or technical services.

🔹 Rate of TDS under Section 194J:

• 10% (on the base amount, excluding GST if shown separately)

🔹 Threshold for deduction:

• Applicable if the aggregate payment exceeds ₹30,000 in a financial year to the service provider.

🚫 Why Not 194C?

Section 194C applies to works contracts or routine execution of contracts. In your case, this is not just clerical work, but a service involving:

• Knowledge of certification processes
• Interfacing with statutory bodies
• Regulatory compliance

Thus, Section 194J is more appropriate.

🧾 Summary:

Particulars	Details
Nature of Service	Documentation & processing for censor approvals
TDS Applicable?	✅ Yes
Applicable Section	🔹 Section 194J – Professional/Technical services
TDS Rate	🔹 10% (excluding GST, if shown separately)
Threshold	₹30,000 per FY per vendor