company is supplying its products to institution/ individual for for availing sponsorship, that way company is promoting its logo and products. As such there is no cash payment but company is incurring cost on those products.
Whether TDS u/s 194C would be attracted and if yes on cost or market value?
Thanks,
R K Aggarwal
TDS Not Applicable on Sponsorship Products Under Section 194C, Clarification Sought on Cost vs. Market Value Basis A company is providing its products to institutions or individuals as part of a sponsorship arrangement to promote its logo and products. The query raised concerns whether Tax Deducted at Source (TDS) under section 194C of the Income Tax Act would apply to these transactions, and if so, whether it should be calculated on the cost or market value of the products. The response received suggested that TDS is not applicable in this scenario, though the responder welcomed further opinions from other experts. (AI Summary)