TDS Applicability on Payments Made to Advertising Agency for Branding and Promotional Services

[Ramanathan Seshan]

Dear Experts,

We have hired an advertising agency to provide a range of services including product branding, packaging design development, logo creation, website development, and promotion on e-commerce platforms. We seek clarification on whether TDS is applicable on the consolidated charges paid to the agency for these services. If applicable, under which section of the Income Tax Act should the deduction be made?

Regards,

S Ram

AI Summary

Professional Creative Services Trigger TDS Under Section 194J with 10% Rate for Comprehensive Branding and Marketing Deliverables An advertising agency was hired for comprehensive branding and promotional services including product branding, packaging design, logo creation, website development, and e-commerce platform promotion. The query sought clarification on TDS applicability. The response indicates TDS under Section 194J (10%) is most appropriate for these professional and creative services, with potential variation if advertising components are distinctly separated in the invoice.