Contract for Advertising

[Smahnz]

Dear Friends, Need your support in following case

ABC PVT ltd makes a contract with xyz pvt ltd. xyz will provide advertising solutions to abc which includes both supplies and services. Contract is for 25000 per month for 6 months.



Questions

In this contract whether ABC needs to deduct income at source from the payment
if yes then wht will be the rate. 6% or 3.5% because both supplies and services are provided in shape of print outs/presentation (Supplies) and marketing (Services)

any ref you may provide for the answer

[LapTop]

Ap k case may choti si problem hay k ap nay services or supplies ka 1 hi contract banaya hay,,,,

XYZ company ko chayea k jab wo invoice kary to us may supplies or services k amount ko alahda alahda mention kary,
Or ABC company wo amount jo invoice may mention hay services par 6% or supplies par 3.5% withheld kary,,,,

Ik bat or agar advertisement services han to us par FED bhi lagy ga 16%, agar invoive may mention ho to 16% FED ABC company withheld kar lay gi, or agar invoice may mention nahi hay 16% FED to jo services ka amount hay us ka 16% FED withheld kar lay gi.

[Smahnz]

Boss ager contract mein distinction anhe hay or abc ko monthly 25000 he pay kernay hein....supplies or services invoice pa pay nahe hon gee...

i mean in 6 months 25000 x 6 =180000 pay karna hay abc ko...there is no %age or amount for services and supplies

[LapTop]

OK then, ap na to 153(a) may aayen gay na 153(b) may , ap ko U/S 153(c) 6% tax withheld karna pary ga.