
Dear Professional Seniors & Friends,
Welcome to this wonderful weekend MCQ self challenge!
This weekend challenge is on Special Focus on Tds Deduction in case of advertisement related services having 5 MCQs to be self answered by participants to take self challenge. The detailed answer of these MCQs shall be posted on Monday for the self assessment of the participants. This post shall be of immense use of the participant.
MCQ 17.1: Mr X engages a advertisement agency for Promotion of his movie. Advertisement agency further engages a News Channel /Newspaper Company for movie’s publication & promotion. Is Tds required to be deducted by Mr X for payment made to advertisement agency. If yes under which section is it to be deducted
A. Yes, u/s 194 C under Contract.
B. Yes, u/s 194H for Commission.
C. Yes, u/s 194J for Professional Services.
D. No Tds to be Deducted.
MCQ 17.2: In reference to the above question, what will be the TDS implication on Payment made by advertisement agency to a News Channel /Newspaper Company?
A. Yes, u/s 194 Cunder Contract.
B. Yes, u/s 194Hfor Commission.
C. Yes, u/s 194Jfor Professional Services.
D. No Tds to be Deducted.
MCQ 17.3: Payment is made by TV Channel/Newspaper Co to Advertisement Agency for booking/procuring/canvassing for Advertisement from various customer.Is TDS required to be deducted.If yes under which section is it to be deducted –
A. Yes, u/s 194 C for Contract.
B. Yes, u/s 194H for Commission.
C. Yes, u/s 194J for Professional services.
D. None of the Above.
MCQ 17.4: What will be the TDS implications on payments made by broadcasters/telecasters to production house for production of content or programme for broadcasting or telecasting?
A. Yes, u/s 194 C for Contract.
B. Yes, u/s 194H for Commission.
C. Yes, u/s 194J for professional Services.
D. No tds to be deducted.
MCQ 17.5: Payment is made by Advertisement Agency for Advertisement to doordarshan. Is TDS required to be deducted.If yes under which section is it to be deducted?
A. Yes, u/s 194 C for Contract.
B. Yes, u/s 194H for Commission.
C. Yes, u/s 194J for Professional Services.
D. No tds is to be deducted.
Sincere Regards
CA Sanjay Kumar Agrawal
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Dear Professional Seniors & Friends,
Warm Greetings!
This post of MCQ is on the provisions relating to applicability of TDS provisions in case of advertisement services.
Answer to MCQ17.1: A) Yes, u/s 194 C under Contract.
Answer to MCQ17.2: D) No tds is required to be deducted.
Answer to MCQ17.3: D) None of the Above.
Answer to MCQ17.4: A) Yes, u/s 194C for Contract.
Answer to MCQ17.5: D) No Tds is to be deducted.
Practical Analysis for MCQ 17.1 &17.2 :-
CBDT Circular issuesd clarifications vide Circular no 715 dated 8.8.1995 regarding Issues related to Advertisement services
There are two legs of payments involved in advertisement business :-
Practical Analysis for MCQ 17.3
Practical Analysis for MCQ 17.4
Case 1 | Case 2 |
Where the content is produced as per the specifications provided by the broadcaster/telecaster and the copyright of the content programme also gets transferred to the broadcaster/telecaster, the CBDT clarifies that such contracts are covered by the definition of the term ‘work’ in Section 194C of the Act. | where the broadcaster/telecaster acquires only the broadcasting/telecasting rights of the content already produced by the production house, there isno contract for ‘carrying out any work’, as required by sub-section (1) of Section 194C of the Act.Therefore, such payments are not liable for TDS under Section 194C of the Act. |
Therefore they are liable for TDS u/s 194C. | Such payments are not liable for TDS under Section 194C of the Act and they may be liable under other Sections. |
Practical Analysis for 17.5
(Disclaimer: The objective of the MCQ post is just to discuss the concept, it may happen, by change of facts, the answer may be different. Please do not treat this as professional opinion; you can definitely have your own opinion.)
Sincere Regards!
CA Sanjay Kumar Agrawal
Mobile: 9810116321
To access MCQ posts regularly, please Join Telegram Channel:
https://t.me/caSanjayKumarAgrawal
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