Hi, I’m Sreerag Ar, founder of Fabus Frames. We turn your memories into digital and handmade portraits and ship them across the globe. I’m also part of The eCom Mafia community - and today, I want to share something that used to give me real headaches:

Filing TDS for Meta (Facebook) Ads.

Like many of you running e-commerce businesses in India, I struggled to understand when and how to apply TDS under Section 194C for ad payments. So, my team and I decided to document the entire process - from calculating the right TDS to filing returns and getting reimbursed by Meta.

If this is something you or your finance team is confused about, this guide is for you.

📌 When Does TDS Apply on Meta Ads?

Under Section 194C of the Indian Income Tax Act, you need to deduct 2% TDS on advertisement expenses if you're paying platforms like Meta or Google.

• 2% if the vendor has a valid PAN

• 20% if PAN is missing

• Applicable when:

  • Any single invoice > ₹30,000

  • OR total payment in a financial year > ₹1,00,000

But here’s the catch: Meta doesn’t let you deduct this directly before payment. So, you need a workaround - and that’s where this process comes in.

🧮 My Annual TDS Filing Process for Meta Ads

1. Pay in Full Every Month

We pay Meta the full invoice amount each month without deducting TDS upfront.

2. At Year-End, Calculate Total TDS

• Collect invoices from April to March

• For each invoice, identify the taxable value

• Calculate 2% on that value

• Sum up the total TDS for the financial year

Example:
If a Meta invoice shows ₹2,865.04 as taxable value,
TDS = 2% of ₹2,865.04 = ₹57.30

3. Create a Challan on TRACES

• Visit NSDL TRACES Portal

• Select CHALLAN NO./ITNS 281

• Use Section Code: 94C for advertisements

• Enter the full year’s TDS amount and pay it

4. File TDS Return Using Form 26Q

I usually file this in Q4 (Jan–Mar) with all the entries for the year:

• Deductee: Meta (Facebook India Online Services)

• PAN, invoice date, TDS amount, and Challan No.

• Tools like ClearTDS or Saral TDS can help

5. Generate Form 16A and Send to Meta

Once the return is processed, download Form 16A (TDS certificate) from TRACES and share it with Meta for compliance.

💰 Reimbursement from Meta

After filing, the TDS should reflect in Form 26AS or TRACES. Meta usually reimburses it back via:

• Credit note

• Balance adjustment

• Or direct refund

But if not, here’s the link to raise a dispute with them:
👉 https://www.facebook.com/help/contact/816921465360613

🛠 Tools That Helped Me

• NSDL Portal – For creating and paying TDS challan

• ClearTDS / Saral TDS – To file Form 26Q easily

• Form 26AS / TRACES – To confirm Meta has claimed it

Why I Shared This

At Fabus Frames, we focus a lot on marketing. But backend compliance like this is just as critical - especially if you’re spending lakhs every year on Meta ads. Filing your TDS correctly can get you thousands of rupees reimbursed - and keep your books clean during audits.

Thanks for reading.
If you have any questions or want to talk more about marketing, compliance, or bootstrapping a D2C brand - feel free to connect with me on LinkedIn or shoot me a mail at sreerag@fabusframes.com.