Tds on Sponsoring

[PONNADA B K RAVIKUMAR]

we are sponsoring an event , which is going to happnen in july'10, where as he raised the bill in june'10 My querey is whether we have to deduct tds or not, if so under whcih section 194C or another other section Second since from now onwards we have to issue quarterly tds certificate, whether we have to account in june'10 or July'10 Pls check and reply asap Thanks

[Rama Krishana]

Sponsorship is an activity which is in the nature of Advertisement and therefore, TDS is required to be deducted under section 194C. Further for the purpose of TDS, date of receipt of bill is immaterial. What is material is date of debit/credit in books of accounts or date of making payment. Therefore, you can plan accordingly.

AI Summary

TDS on sponsorship treated as advertising/service payment; withhold required and timing follows accounting entries for deduction. TDS on sponsorship must be withheld as payment for advertising/services under the contract-payment TDS regime, applying deduction obligations under 194C. The relevant trigger for deduction and for quarterly TDS accounting and certificate issuance is the date of debit/credit in the payer's books or the date of payment; the supplier's bill date is immaterial.