Tax Deduction at Source (TDS) on payments by television channels and publishing houses to advertisement companies for procuring or canvassing for advertisements

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.... Taxes (CBDT) New Delhi, Dated: 29^th February, 2016 Sub: Tax Deduction at Source (TDS) on payments by television channels and publishing houses to advertisement companies for procuring or canvassing for advertisements. The issue of applicability of TDS provisions on payments made by television channels or media houses publishing newspapers or magazines to advertising agencies for procuri....

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....ised in various cases as to whether the fees/ charges taken or retained by advertising companies from media companies for canvasing/ booking advertisements (typically 15% of the billing) is 'commission' or 'discount'. It has been argued by the assessees that since the relationship between the media company and the advertising company is on a principal-to-principal basis, such payme....

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....s filed by the Department in the matter of Living Media Ltd. and Jagran Prakashan Ltd have been dismissed by the Supreme Court vide order dated 11.12.2009 and order dated 05.05.2014, respectively.   Though these decisions are in respect of print  media, the ratio is also applicable to electronic media/ television advertising as the broad nature of the activities involved is similar.....