TDS u/s. 194C

[Guest]

Payment is made to a film studio for advertisement shooting. Please clarify if TDS to be deducted at 1% u/s. 194c or at 10% u/s. 194J

[CAGOPALJI AGRAWAL]

Reply can not be given unless the full terms of the agreement is gone through.

[CASeetharaman KC]

Please check whether the work has been given as a contract for all the work including arrangement of models and other things required for the advertisement shoot . If this is so then the rate should be 1%. The contact if any needs to be scrutinised in any case

AI Summary

TDS classification for film studio services: characterization as contract work or professional service determines withholding rate. Whether payment to a film studio for advertisement shooting falls under section 194C as contract remuneration or under section 194J as professional services depends on contractual characterisation; if the studio undertakes the entire work including arranging models and ancillary requirements, it should be treated as a contract payment, and the agreement must be scrutinised to determine the correct withholding treatment.