Google Ads is a prominent advertising platform that allows businesses and individuals to promote their products and services to a large number of people who are searching the internet.
Google Ads operates as a business in India charging advertising fees for showing ads at top of google search results. Google charges payment on an automatic basis from credit card and also gives manual payment options to their good clients.
Now, on making payment to Google, either way, businesses in India are required to deduct and deposit TDS to the Income Tax Department.
Challenge in deducting and depositing TDS of Google Ads
Google automatically debits the amount equivalent to their invoicing amount along with GST.
Therefore, A business using google ads with automatic payment gets no chance to deduct TDS from google due payments.
Hence required to deposit TDS amount from his pocket in order to comply with TDS laws.
“Challenge is businesses are required to deposit Google TDS from their own pocket”
Wait.. wait…
We will guide you in this article how you can take refund or reimbursement of TDS deposited by you on behalf of google.
Is TDS required to be deducted on Google Ads Payment?
Yes, As per the provision of section 194C of the income Tax Act, 1961 every person making aggregate payment of INR 1,00,000 in a financial year or single transaction of INR 30,000 then required to deduct and deposit TDS at the rate of 2% of Google Invoice amount.
Note:- TDS is not required to be deducted on the GST amount.
How to claim TDS Refund for Google Ads
- Deposit TDS u/s 194C
- File TDS Return mapping with Google PAN Number. The Google PAN is available over Google Ads Invoice
- Generate Form 16A from Traces Portal
- Email at tds.certificates@google.com
- Form 16A
- Google Invoices
- Google Billing Account Number
- Invoice & TDS Summary
- Cancel Cheque
- Once google process the TDS Form, they will credit the refund in the bank account\
Must know things to claim TDS Refund for Google Ads
- Individuals must submit a TDS certificate to Google in order to get a refund for the amount deducted.
- Every quarter, according to the fiscal year and the timetable established in the applicable Indian tax legislation, TDS certificates must be submitted.
- You must provide TDS Certificates by July 30th, October 30th, January 30th, and May 15th for each quarter finished in June, September, December, and March.
- However, if an individual provides their previous fiscal year’s TDS certificates, the policy will not accept them if they are received after May 31st of the current fiscal year.
- Do not include the GST amount when computing the TDS amount. TDS must be computed only on the invoice amount excluding GST.
- The TDS Rate is 2% for google ads excluding GST.
- For more information, you can also visit the official google website at: Taxes in your country – Google Ads Help
Moreover, If you want any other guidance concerning TDS Return Filing, please feel free to talk to our business advisors at 8881-069-069.
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