TDS 194H OR 194C, Income Tax

[Ramesh Agarwal]

A client has a contract with an advertising agency, the agency incurrs the expenditure and the same is reimbursed by the client. however the agency charges the commision which is shown in the invoice separately along with expenses to be reimbursed.

Please suggest that whether the commission amount will be subject to deduction U/S 194H or the whole billamount will be subject to deduction U/S 194C.

Posts / Replies

[khushbu mevawala]

We have to see first contract between these two parties client and adverising agency.

If their relation exists on principal to principal basis then then whole ant inculing payment for advertisement and commosion is laible to deducted u/s 194C . But if between these parties prncipal and angent i.e one sided relationship exists then commision ant is liable u/s 194H

by : Khushbu V. Mevawala