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Tax Deducted at Source Process in India | #AdWordsAnswers

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Hello AdWords Community, 

 

My name is Varun, and I'm from the AdWords team at Google. I’m going to give you some additional information about the Tax Deducted Source (TDS) process in India.

 

TDS is a unique process for India, in which an AdWords account may be eligible for a TDS Credit/Refund/Underpay depending on the method of payment. As per applicable tax laws, if you have filed your payments to Google as a deduction, you need to submit TDS certificates. Find instructions below, according to your payment setting.



  • Payment Setting: Prepay (Automatic and Manual Payments)

If your AdWords account is on pre-pay through either automatic or manual payments, you may be eligible to receive the TDS amount back in your AdWords Account. This would be in the form of a credit to you, into your AdWords Account which you can use for future advertising.

To submit your TDS certificate to us, please contact us through one of the following options, or send a hard copy of your signed TDS certificate to our local office (address below). Our teams will process the credit, and it will usually appear in your AdWords account within 2-3 business days.

 

 

  • Payment Setting: Post Pay (Monthly Invoicing)

If your AdWords Account is setup on Monthly Invoicing, you can deduct the TDS amount before making the payment. Here is an example of this scenario: 

Step 1: For example, if your total bill, including taxes is INR 100, and your TDS amount comes to INR 2, you have to make a payment for INR 98.  
Step 2: Make sure you attach the Payment Slip, which can be found at the bottom of each Invoice if you’re sending us a cheque. Please also send the Payment Slip to collections-in@google.com for our records. 

Step 3: Send your TDS Certificates to us, with the subject line “TDS certificates for [your AdWords Customer ID],” to tds.certificates@google.com at the end of each fiscal quarter so that we can validate the amounts you have deducted.



  • Multiple Payment Settings

If you were you using Automatic / Manual Payments at one point in time, but have switched to Invoicing, you can still send us the TDS Certificates by contacting us, and sending us digitally signed certificates. Please do not send physically signed copies to our office, as they may not get processed due to your current billing setup. We’ll be happy to apply a credit in your AdWords Account for the past amount due, which would be adjusted against the current open invoice in your account.

If you’re unsure which Billing Method your account is on, view your Billing Pages.

 

TDS Certificates Requirements
There are multiple ways in which you can submit a TDS, but please note that we accept only Form 16(a). Please read below for accepted and unaccepted formats.

 

Accepted Formats: 

  • Digitally Signed Copies: We accept Digitally Signed Copies in PDF Format only. We do not accept digital copies which are not digitally signed.
  • If you are sending us Hard Copies, please make sure that they are duly signed by the appropriate parties, and scan the Certificates in full. Generally, TDS Certificates span over two A4 size sheets.

Unaccepted Formats: 

  • Digital Copies which aren’t Digitally Signed
  • Incomplete copies of Certificates (eg. Only 1 out of 2 pages)
  • Photos of certificates (eg. pictures taken from your mobile phone, apps which convert photos into PDFs,  etc.)

What is a Digital Signature: 

It’s not always possible for us to sign Digital Copies of a document. Hence, there’s a feature known as a Digital Signature through which a person can attach their signature on a digital document. There are multiple ways to Digitally Sign a document. You may check out this article through which you can sign documents using Acrobat Reader.



Information you may require from Google while filing for TDS with Tax Authorities

Please note that Google does not advise on tax matters. For any questions related to How Much TDS? How do I get the Certificate? Where do I file for TDS? Etc, please seek independent advice from a chartered accountant.

We accept only Form 16(a). We have seen some cases wherein some clients have sent us Form 26. Unfortunately, we do not accept any other format.  

Contact Information

Google's Permanent Account Number (PAN) is AACCG0527D and the registered address on the TDS Certificate should be:


Google India Pvt. Ltd.

No.3, RMZ Infinity, Tower E,

Old Madras Road, 4th & 5th Floor,

Bangalore - 560 016

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Comments
Linen Fantasies
March 2016

Hi Varun,

 

Thre is a BIG confusion here and some clarity is required. Our account is based in India but they payments are made in USD to Singapore at googlecc@google.com

 

Does the TDS process remains the same irespective of the currency? Can TDS be deducted only if the currency is in INR and if the payment is made to Google India Pvt Ltd?

 

Please advise,

 

Thanks

Varun Dayal Google Employee
March 2016

Hey There!

 

Thanks for posting your concern. Unfortunately, we're able to process TDS Credits only if:

 

1. Billing Address is India

2. AdWords Billing is done in INR. 

3. Corporate Entitiy is in India. 

 

In your case, we are not able to satisfy point 2. Also, we are not able to confirm point 3 (based on your comment). 

 

I'm afraid, we will not be able to process TDS Credits in this account since it would be failing our requirements. Best would be if you could set up a fresh AdWords Account, set your currency as INR, and also make sure that the Corporate Entity is in India to avoid such issues in future. 

 

Do feel free to give us a call on +91-1800-258-2554 for any other concerns.

 

Best,

Varun

Linen Fantasies
March 2016
Hi Varun,

Thanks for getting back.Two out of Three conditions are met in our case.

1. Billing Address is India - YES, our billing address is based in Hyderabad

2. AdWords Billing is done in INR - NO, billing is being done in USD

3. Corporate Entity is in India - YES, we are a registered firm (PVT LTD)
in India

I believe these is some exception and way out for this. We have spent a
HUGE amount on Adwords. Not being able to deduct TDS will will result in
dis-allowance of this expense and will lead to 30% Tax. I am sure that
there might be many more users in India who might be paying in USD for
their campaigns.
Varun Dayal Google Employee
March 2016

Hey there, 

 

Thanks for writing back. In your particular case, the AdWords Billing Setup shouldn't be charging you any service tax, in order for you to be able to receive a valid TDS Credit, hence negating any possibility for us to make an exception. 

 

Hope this helps Smiley Happy

 

Best,

Varun

Kush V
March 2017

What if the advertiser mode of payment is Manual and they no longer want to continue advertising. Will they get a refund once they submit the TDS certificate or they will get credit only?

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