TDS Applicability on Payments Made to Social Media Influencers

[Ramanathan Seshan]

Dear Experts,

We engage social media influencers for the promotion of our products. Kindly clarify whether Tax Deducted at Source (TDS) is applicable on payments made to such influencers for such promotional activities. If TDS is applicable, under which section of the Income Tax Act should the deduction be made?

Regards,

S Ram

AI Summary

TDS on influencer payments: monetary fees and retained products trigger different withholding rules and obligations.
TDS applies to influencer promotions: monetary payments attract TDS as fees for professional services (TDS on Professional Services) with GST excluded if shown, while influencers who retain products as consideration trigger withholding as benefits in kind (TDS on Benefits in Kind); retention versus return of the product determines applicability of in-kind withholding, and a regulatory clarification distinguishes these scenarios and their respective exemption thresholds.