How to Claim TDS Refund for Google Ads in India

1. Introduction: Why TDS on Google Ads Matters

Google Ads is one of the most popular digital advertising platforms, helping businesses reach customers across Google Search, YouTube, and the wider display network.

But when you pay Google Ads bills in India, the Income Tax Act requires TDS (Tax Deducted at Source) deduction on advertising payments.

Here’s where the problem arises:

• Google charges the full invoice amount (including GST) via automatic card payments or manual payments.
• Since the payment is auto-debited, advertisers cannot deduct TDS at source.
• Businesses must deposit TDS separately from their own pocket to remain compliant.

The good news? You can claim a refund (in the form of ad credits) for the TDS deposited on Google’s behalf.

2. Is TDS Deduction Compulsory on Google Ads?

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

• TDS is applicable on advertising payments.
• 2% TDS must be deducted on the invoice value (excluding GST).
• Applicability:
  • If a single invoice is ₹30,000 or more OR
  • If aggregate payments in a financial year exceed ₹1,00,000.

Important: GST is not included when calculating TDS.

3. Why Advertisers Pay TDS from Their Own Pocket

Google India Pvt. Ltd. issues invoices and auto-debits the full amount, leaving no room to deduct TDS.

That means:

• You pay Google the full amount (Invoice + GST).
• You separately deposit 2% TDS to the government.
• To avoid double burden, you can later claim reimbursement from Google.

4. Step-by-Step Guide to Claim TDS Refund from Google

Step 1: Deposit TDS

• Pay TDS at 2% of invoice (excluding GST).
• Use Google India’s PAN: AACCG0527D while filing TDS returns.

Step 2: File TDS Return

• File your quarterly TDS return under Section 194C.
• Generate Form 16A (TDS Certificate) from the TRACES portal.

Step 3: Submit Documents to Google

Send the following to tds.certificates@google.com or upload via the Google Ads Help Center:

• Form 16A (TDS Certificate)
• Google Ads Invoices
• Google Billing Account Number
• Invoice & TDS Summary (Excel)
• Cancelled Cheque copy (if requested)

Alternatively, you can courier the documents to:

Google India Pvt. Ltd., 9th Floor, Building 8, Tower C, DLF Cyber City, Phase 2, Gurgaon 122002

Step 4: Acknowledgment and Processing

• Google confirms receipt with a Case ID.
• Refund is provided as Ad Credits to your Google Ads account.
• Usually processed within 5–15 working days.

5. Deadlines You Must Remember

To ensure your claim is accepted:

• Quarterly Submission Deadlines:
• • Q1 (Apr–Jun): Submit by July 30
  • Q2 (Jul–Sep): Submit by October 30
  • Q3 (Oct–Dec): Submit by January 30
  • Q4 (Jan–Mar): Submit by May 15
• Past Year Cutoff:

  • TDS certificates of the previous financial year must be submitted before May 31 of the current year.

6. Excel-Friendly Snapshot Summary

7. Must-Know Rules Before Filing

• Always exclude GST when calculating TDS.
• Submit TDS certificates quarterly without delay.
• Refunds are given only as ad credits, not bank transfers.
• Old/late submissions beyond the deadline may get rejected.

8. Final Thoughts

For Indian advertisers, TDS on Google Ads often feels like an extra burden since payments are auto-debited. But the law requires it, and fortunately, Google provides a way to reimburse your TDS as ad credits.

Stay on top of deadlines, keep your Form 16A ready, and submit on time. With the right process, your credits usually reflect within 1–2 weeks.

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Please note that the information provided here is for general understanding purposes only and should not be considered professional tax advice. For specific tax advice tailored to your individual circumstances, it is best to consult a qualified tax advisor. Or check the verified link, which is shared in the source.