TDS Applicability on Charges for Censor Certification Services

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..... TDS Applicability on Charges for Censor Certification Services
Query (Issue) Started By: - Ramanathan Seshan Dated:- 25-4-2025 Last Reply Date:- 25-4-2025 Income Tax
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Income Tax
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 .....

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..... 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 Reply By YAGAY andSUN: The Reply: 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 Servi .....

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..... ce: 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 Sec .....

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..... tion 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 .....

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..... - 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 Rs.30,000 in a financial year to the service provider. 🚫 Why Not 194C? Section 194C applies to works contracts or routine execution of contract .....

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..... s. 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 1 .....

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..... 94J - Professional/Technical services TDS Rate 🔹 10% (excluding GST, if shown separately) Threshold Rs.30,000 per FY per vendor
Discussion Forum - Knowledge Sharing .....

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