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Applicability of TDS on Ad-spends on Meta, Google, Amazon and LinkedIn

Updated: 10 minutes ago

With the rapid digitization of marketing, it is almost inevitable for all kinds of businesses in India to sooner or later start advertising online on platforms like Google (Google Search Engine and YouTube), Meta (Facebook and Instagram), Amazon, and LinkedIn. But are you aware of the TDS (Tax Deducted at Source) implications while making these payments?

In this article, we break down the applicability of TDS on digital advertising spends in India under the Income Tax Act, 1961, and explain the procedures laid out by each platform.

TDS Applicability on Online Advertisements – Section 194C

Under Section 194C of the Income Tax Act, TDS must be deducted on payments made for advertising services:

Any person making payment to a resident for carrying out any work (including advertising) under a contract shall deduct TDS at the time of credit or payment, whichever is earlier.

Applicable TDS Rates:

  • 1% for payments to individuals or HUFs

  • 2% for payments to others (e.g. companies like Google, Meta and Amazon)


Note: The definition of “work” under Section 194C includes advertising, and “contract” also includes sub-contracts.

When is TDS Under Section 194C Not Applicable?

TDS under Section 194C is not required in the following scenarios:

  • Payment does not exceed ₹30,000 per instance, and aggregate annual payment is less than ₹1,00,000

  • Payment is made by an individual or HUF for personal purposes

How to Deduct TDS When Paying via Credit/Debit Card?

A common concern: When you pay Google, Meta, or Amazon using an auto debit transaction through a credit card, debit card, or UPI, how can TDS be deducted?

These platforms typically don’t allow deduction at source during payment. Instead, you must:

  1. Deposit the TDS amount from your own funds to the Income Tax Department

  2. Submit the TDS certificate (Form 16A) to the platform

  3. The platform will verify and credit the TDS refund back to your ad account, usually in the form of ad credits

Platform-wise TDS Compliance Process

  1. Meta Ads (Facebook, Instagram)

    Meta Ads in India are billed in INR by Meta India and as explained above, they are subject to TDS u/s 194C.

    Key Steps:

    Pay TDS from your own funds. The due date for payment shall be worked out based on the invoice date, i.e. by 7th of the following month (in case date of invoice is between the months of April to February) and by 30th April (in case date of invoice is in March).

    1. Submit TDS certificates (Form 16A) to claim ad credit through Meta’s TDS claim portal

    2. Wait for verification and refund. Processing may take up to 2 months.

    3. Refund is issued as ad credit, not cash

    4. PAN must be added to your ad account

    5. Claims for a financial year must be submitted by 31 October of the following year

    6. Ads purchased via the Apple App Store are not eligible for TDS refunds from Meta

    7. Relevant Link: https://en-gb.facebook.com/business/help/571983419976170


  2. Google Ads (Google, YouTube)

    Google Ads payments from Indian users are billed by Google India Pvt. Ltd. in INR and therefore subject to TDS u/s 194C.

    Submission Process:

    1. For monthly invoicing: Send Form 16A to collections@google.com or to Google India's office located at Google India Pvt. Ltd., No.3, RMZ Infinity, Tower E, Old Madras Road, Bangalore - 560016.

    2. For pre-paid accounts: Send the signed certificate to the designated email

    3. TDS certificates must be submitted by 15 June of the following financial year

    4. Once approved, thttp://Pvt.inhe TDS amount is credited to your Google Ads account as balance.

    5. Relevant Link: https://support.google.com/google-ads/answer/2375370?hl=en&sjid=5498284669956252087-NC


  1. Amazon Ads

    In Amazon, ad spends are billed by Amazon Seller Services Pvt. Ltd. in INR, and therefore they are subjected to TDS u/s 194C.

    Key Steps:

    1. Amazon charges the full fee (inclusive of TDS)

    2. The Seller must deposit TDS to the government

    3. Contact Amazon Selling Partner Support and open a case with subject “TDS reimbursement”. Attach Form 16A with Amazon’s PAN and details.

    4. Refund will be credited in the next settlement cycle

    5. Relevant Link: https://sellercentral.amazon.in/help/hub/reference/external/G201744710?locale=en-IN


  2. LinkedIn Ads

    LinkedIn India operates through LinkedIn India Online Services Pvt. Ltd., and bills in INR for the ad-spends. Therefore, as explained above, TDS u/s 194C is applicable on such ad-spends.

    Key Steps:

    1. Deposit TDS on the full INR invoice

    2. Obtain Form 16A showing LinkedIn India’s PAN/GST

    3. Upload Form 16A in LinkedIn’s billing portal or submit via LinkedIn support

    4. Refund processed as ad credit post-verification (usually within weeks)

    5. Link: It appears that there is no official LinkedIn India webpage explicitly detailing their TDS reimbursement policy

Final Takeaways

  • TDS on online ads is applicable under Section 194C, typically at 2%

  • Since platforms don’t allow direct TDS deduction during payment, you must deposit TDS yourself and then claim a refund/credit

  • Make sure to enter the correct PAN details of the online platform while filing TDS returns

  • Timely submission of Form 16A is essential to get your refunds approved

  • Each platform (Meta, Google, Amazon) has its own process and deadlines. Always check for updates annually.

You can direct your queries or comments to the authors here.


Disclaimer: The material herein is provided for informational purposes only. The information should not be viewed as professional, legal or other advice. Professional advice should be sought prior to actions on any of the information contained herein. CKA is not responsible for any matter concluded by any person based on the contents of this article.

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