Dear Experts,
We have engaged a vendor to carry out branding activities for our retail outlets, which includes in-store branding, signage, and visual merchandising elements. Kindly advise whether TDS is applicable on the charges paid for such services. If so, under which section of the Income Tax Act should the deduction be made?
Regards,
S Ram
Vendor Branding Services Trigger TDS Obligations Under Section 194C with Specific Rate and Threshold Calculations A retail business sought guidance on TDS applicability for vendor branding services. The expert response indicated TDS is applicable under Section 194C for works contracts involving in-store branding, signage, and visual merchandising. The TDS rate varies between 1-2% based on vendor type, with threshold limits of Rs. 30,000 per payment or Rs. 100,000 annually. Recommendation is to review contract details and apply appropriate TDS deduction. (AI Summary)
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