How to Claim Google Ads TDS Refund in India

When businesses pay for services like Google Ads or Facebook Ads, they are required to deduct Tax Deducted at Source (TDS) and pay it to the government. However, Google doesn’t allow TDS deduction from their payments. Instead, you pay the full invoice amount to Google and pay the TDS separately to the government. You can then claim the TDS amount as "Ad credits" by submitting your TDS certificates to Google every quarter.

 

This guide explains the steps to claim a TDS refund from Google in India.

 

What is TDS?

TDS (Tax Deducted at Source) is a way to collect taxes directly from the income source. The payer (deductor) deducts TDS from the payment made to the recipient (deductee) and pays it to the government. The recipient gets the remaining amount after the deduction.

 

What are Google Ads?

Google Ads is a platform where businesses pay to advertise their products or services. Common ad types include search ads, shopping ads, display ads, and YouTube ads. Advertisers pay Google each time users click on their ads.

 

When businesses pay for ads, they must deduct TDS from the payment made to Google and remit it to the government.

 

Steps to Claim TDS Refund from Google India

 

1. Make the Payment:

• Pay your full Google Ads invoice, including the TDS amount.

 

2. Calculate TDS:

• TDS rate for Google Ads: 2% (excluding GST).
• Example:
  • Subtotal (Ad Spend): ₹10,000
  • GST: ₹1,800
  • Total: ₹11,800
  • TDS: (₹10,000 × 2%) = ₹200

 

3. File TDS Returns:

• Pay the TDS amount to the government.
• Use Google’s PAN (AACCG0527D) when filing.

 

4. Download TDS Certificate (Form 16A):

• Log in to the Income Tax website and download Form 16A.
• This form serves as proof of TDS deduction.

 

Submitting TDS Certificates to Google

Eligibility:

• Businesses that have canceled their Google Cloud Billing account can request refunds.
• Submit TDS certificates every quarter (June, September, December, and March) within the prescribed timelines.

 

Deadlines:

• July 30th, October 30th, January 30th, and May 15th for quarterly submissions.
• Certificates from the previous financial year must be submitted by May 31st.

 

Claiming TDS Refund as Google Ads Credits

1. Log in: Use the same Google account linked to your Google Ads account.

 

2. Visit Help Page:

• Go to the Google Ads Help Page.
• Select “India” as your country.

3. Send TDS Certificates:

• Scroll to the "Sending Tax Deducted at the Source (TDS) Certificate" section.
• Follow the instructions to email the certificates to Google.

 

4. Fill in Details:

• Log in with the correct email linked to your Google Ads account.
• Select the right account from the dropdown.

 

5. Attach Documents:

• Upload all required TDS certificates (Form 16A).
• Ensure the certificates are up-to-date, as outdated ones may be rejected.

 

6. Submit Request:

• Complete the form and click "Submit."
• You’ll receive an automated acknowledgment email from Google.

 

What Happens After Submission?

Once submitted, you’ll receive an automated email from Google (ads-support@google.com):

"We've opened a case for you. Our team will begin working on your request, and you’ll hear from us soon."

 

The TDS refund will be credited to your Google Ads account as ad credits within 10–15 days. Google may contact you via email or phone for additional details. Respond promptly to ensure a smooth process.

 

Important Notes

• Exclude GST when calculating TDS.
• Google refunds the TDS amount as ad credits to the same Google Ads account.
• Avoid submitting old or incorrect certificates.

 

Conclusion

By following these steps, you can easily claim your Google Ads TDS refund as ad credits. Ensure you file TDS returns accurately, submit valid certificates, and respond to any follow-up communication from Google. This process helps you recover the TDS amount while maintaining compliance with tax regulations.

For additional assistance with your PPC strategy, feel free to contact our expert pay-per-click advertising team for support!