If your business is running Google Ads in India, you’ve likely noticed a frustrating hurdle: Google requires full invoice payment upfront, leaving no option to deduct Tax Deducted at Source (TDS).
For many growing startups and businesses, this 2% (under Section 194C) or 10% (under Section 194J) becomes an “invisible tax.” It impacts cash flow because the refund process often feels complex and manual to manage.
The Problem: The “Pay Twice” Trap
Since Google’s payment gateway does not allow TDS deduction at the time of payment, Indian companies usually end up:
• Paying 100% of the invoice to Google.
• Paying an additional 2% TDS to the Government of India from their own funds.
If the proper reimbursement process is not followed, this amount becomes a permanent loss. For a business spending ₹50 Lakhs annually, that’s ₹1,00,000 in lost liquidity that could have been reinvested into growth.
The Solution: The 4-Step Recovery Process
At Jatin Sethi & Co., we help businesses recover this amount through a structured and compliant workflow:
1. Deposit the TDS Pay the applicable TDS through Challan ITNS 281 using your TAN. Ensure the payment is mapped to the correct section (194C or 194J).
2. File Quarterly Returns Ensure accurate and timely filing of TDS returns (Form 26Q) so the data reflects in the government’s portal.
3. Download Form 16A After the return is processed, download the digitally signed TDS certificate from the TRACES portal. This is the mandatory proof required by Google.
4. Submit to Google Raise a refund request through the Google Ads Help & Support or Billing section. Attach Form 16A along with the relevant invoices. Google typically processes these as Service Credits added back to your ad account.
How Jatin Sethi & Co. Helps
Managing TDS refunds for digital advertising requires consistent tracking and compliance. Our team acts as an extension of your finance function by:
• Auditing Transactions: Tracking every Google Ads transaction against bank statements.
• Compliance Excellence: Ensuring 100% accuracy in TDS deposits and filings to avoid interest or penalties.
• End-to-End Recovery: Managing communication with Google until the refund is successfully credited.
Stop treating TDS as a cost. Treat it as a receivable and strengthen your cash flow.
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About the Author
anky
Professional Chartered Accountant with expertise in taxation, financial planning, and business advisory services. Committed to helping businesses and individuals achieve their financial goals through personalized solutions and expert guidance.
