Step-by-Step Guide: How to Claim a TDS Refund for Facebook (Meta) Ads in India

Pixabay

Facebook Ads, now called Meta Ads, is a widely-used platform for businesses and individuals to promote their products and services. With its vast user base, it has become a go-to choice for online advertising.

 

When running ad campaigns on Facebook, payments are made via various methods, such as credit/debit cards, net banking, Paytm Wallet, or Facebook Ad coupons. These payments are automatically deducted from your Facebook Ads account.

 

However, under Indian taxation laws, you are required to deduct Tax Deducted at Source (TDS) on these payments and file it through TDS returns. Here's everything you need to know about claiming TDS refunds for Facebook Ads.

 

Why is TDS Deduction Necessary for Facebook Ads?

As per Section 194C of the Income Tax Act, 1961:

• If you make payments exceeding ₹1,00,000 in a financial year or ₹30,000 in a single transaction for services (like Facebook Ads), you must deduct and deposit TDS at 2% of the invoice amount (excluding GST).

 

How to Claim TDS Refund for Facebook Ads?

 

If you've deducted TDS for Facebook Ads, you can request a refund in the form of Facebook ad credits. Follow these steps:

 

1. Deposit TDS and File TDS Return

• Deposit TDS under Section 194C.
• Ensure the TDS filing is mapped with Facebook’s PAN Number.

 

2. Generate Form 16A

• Log in to the Traces portal and generate Form 16A, which acts as proof of TDS payment.

 

3. Submit Refund Request

• Visit the TDS Refund for Facebook Ads page.
• Provide details like:
  • Ad Account ID
  • GSTIN (if applicable)
  • PAN and TAN Numbers
• Upload Form 16A and select the transaction date.

 

4. Send Request

• Click the “Send” button to submit your request.

 

Processing Time

• Facebook typically takes up to two months to approve and process the refund.
• Once completed, you’ll receive an email confirmation, and the refund will appear as ad credits in your account.

 

Important Points to Note

1. Refund as Ad Credit

• The TDS refund is issued as ad credits directly to your Facebook Ad account.

 

2. GST and SEZ Exemptions

• GST is applied along with TDS on ad payments.
• Advertisers in Special Economic Zones (SEZ) may be eligible for GST exemption.

 

3. Timely Submission

• Certificates for TDS claims must be submitted by October 31 of the subsequent fiscal year. Late submissions will not be accepted.

 

4. Update GSTIN or PAN

• Ensure your GSTIN or PAN is linked to each Facebook Ad account before claiming TDS.

 

Conclusion

Claiming a TDS refund for Facebook Ads is straightforward and can be done entirely online. Ensure you follow the steps diligently and submit documents on time to avoid issues.

 

If you need expert help, visit Meta’s official page on TDS Refunds for India.

 

By understanding these steps, you can effectively manage your ad budget and ensure compliance with Indian tax laws.

 

Happy Advertising!