TMI Blog2016 (5) TMI 1535X X X X Extracts X X X X X X X X Extracts X X X X ..... d on payments made by television channels/newspaper companies to the advertising agency for booking or procuring of or canvassing for advertisements. It is also further clarified that 'commission' referred to Question No. 27 of the Board's Circular No. 715 dated 8.8.95 does not refer to payments by media companies to advertising companies for booking of advertisements but to payments for engagement of models, artists, photographers, sportspersons, etc. and, therefore, is not relevant to the issue of TDS referred to in this Circular. It is needless to mention that CBDT circulars are binding on the authorities employed for execution of the provisions of the Income-tax Act so long as they are beneficial to the assessee. The sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that it is a case of deductor not deducting taxes from payments made to deductee on account of advertisement. 5. For these and other grounds that may be raised during the course of appeal. 3. Briefly, facts of the case are as under: The respondent assessee is a company incorporated under the provisions of the Companies Act, 1956. It is engaged in the business of development of properties as well as agency to M/s.Bennet, Coleman Co., Survey operations u/s 133A of the Income-tax Act, 1961 ['the Act' for short] was conducted in the business premises of the respondent-assessee-company by the Income-tax Officer (TDS), [ TDS officer for short], Ward 16(1), Bangalore on 2/8/2012. During the course of such survey operations, TDS O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re was no liability to deduct tax at source in view of the Circular No.715 dated 8/8/1995 according to which the provisions of sec.194C are not applicable when advertisement agents makes payment both to media or print media and electronic media. 5. Being aggrieved, revenue is in appeal before us with the present appeal. 5.1 Learned Departmental Representative argued that the impugned payments were made as advertisement charges to publisher house and therefore, circular No.715 is not applicable and therefore, the CIT(A) ought not to have held that the respondent-assessee-company is not in default. 5.2 On the other hand, learned AR of the respondent-assessee company had invited our attention to recent circular bearing No.5 of 2016 da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... procuring or canvassing for advertisements. 1. The issue of applicability of TDS provisions on payments made by television channels or media houses publishing newspapers or magazines to advertising agencies for procuring and canvassing for advertisements has been examined by the Board in view of representations received in this regard. 2. It is noted that there are two types of payments involved in the advertising business: (i) Payment by client to the advertising agency, and (ii) Payment by advertising agency to the television channel/newspaper company The applicability of TDS on these payments has already been dealt with in Circular No. 715 dated 8.8.1995, where it has been clarified in Questions No. 1 2 that while TDS un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 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. 5. In view of the above, it is hereby clarified that no TDS is attracted on payments made by television channels/newspaper companies to the advertising agency for booking or procuring of or canvassing for advertisements. It is also further clarified that 'commission' referred to Question No. 27 of the Board's Circular No. 715 dated 8.8.95 does not refer to payments by media companies to advertisin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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