Google Ads TDS Refund in India: Process, Rules & Deadlines Explained

Google Ads is one of the most widely used digital advertising platforms in India, enabling businesses to promote their products and services across Google Search, YouTube, and the Display Network. However, many Indian advertisers face confusion when it comes to TDS on Google Ads payments.

 

If you are paying for Google Ads in India, understanding how TDS works and how to claim a refund can save you money and ensure full tax compliance. This guide explains everything in simple terms.

 

Why TDS on Google Ads is Important for Indian Advertisers

Under Indian tax laws, advertising expenses attract Tax Deducted at Source (TDS). When you pay Google Ads bills, Google automatically debits the entire invoice amount including GST from your card or bank account.

 

Since advertisers cannot deduct TDS at the time of payment, they must:

• Pay the full Google invoice, and
• Deposit the applicable TDS separately from their own funds

 

The good news is that Google allows advertisers to claim this TDS amount back as ad credits, provided the correct process is followed.

 

Is TDS Mandatory on Google Ads Payments?

Yes, TDS on Google Ads is compulsory under Section 194C of the Income Tax Act, 1961.

 

Key Rules You Should Know:

• TDS rate: 2%
• TDS is calculated on: Invoice value excluding GST
• Applicable when:
• A single invoice exceeds ₹30,000, or
• Total annual payments exceed ₹1,00,000

 

⚠️ GST should never be included while calculating TDS.

 

Why Advertisers End Up Paying TDS from Their Own Pocket

Google India Pvt. Ltd. issues invoices and auto-debits the full payable amount. Since advertisers cannot reduce TDS from the payment, they must:

• Pay Google the full invoice amount (including GST)
• Deposit 2% TDS separately with the government

 

To avoid this double financial impact, Google provides a TDS reimbursement in the form of ad credits.

 

Step-by-Step Process to Claim TDS Refund from Google Ads

 

Step 1: Deposit the TDS

• Calculate 2% TDS on the invoice amount (excluding GST)
• Deposit it using Google India’s PAN: AACCG0527D

 

Step 2: File Your TDS Return

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

 

Step 3: Submit Documents to Google

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

• Form 16A (TDS Certificate)
• Google Ads invoices
• Google Ads billing account number
• Invoice and TDS summary (Excel format)
• Cancelled cheque (if requested)

 

You may also courier the documents to Google India’s Gurgaon office if required.

 

Step 4: Refund Processing

• Google sends an acknowledgment email with a Case ID
• The approved TDS amount is credited as Google Ads promotional credits
• Processing time is usually 5–15 working days

 

Important Deadlines You Must Follow

To ensure your claim is accepted, submit documents within the prescribed timelines:

 

Quarter	Period	Deadline
Q1	Apr–Jun	July 30
Q2	Jul–Sep	October 30
Q3	Oct–Dec	January 30
Q4	Jan–Mar	May 15

 

📌 Previous financial year TDS certificates must be submitted before May 31 of the current year.

 

Quick Summary of the TDS Refund Process

1. Google auto-debits invoice + GST
2. Advertiser deposits 2% TDS separately
3. Quarterly TDS return is filed
4. Form 16A is generated
5. Documents are submitted to Google
6. Acknowledgment is received
7. Refund is credited as ad credits

 

Important Rules to Remember Before Filing

• Always exclude GST while calculating TDS
• File TDS returns on time every quarter
• Refunds are provided only as ad credits, not cash
• Late or incorrect submissions may be rejected

 

Final Words

For Indian businesses, TDS on Google Ads may initially seem like an extra burden. However, it is a legal requirement and thankfully, Google offers a structured way to recover the amount as ad credits.

 

By staying organized, meeting deadlines, and submitting accurate documents, advertisers can usually receive their TDS credits within 1–2 weeks. This ensures tax compliance without losing advertising value.

Frequently Asked Questions – Google Ads TDS Refund

Is TDS applicable on Google Ads in India?

Yes, TDS is applicable on Google Ads payments in India under Section 194C of the Income Tax Act.

What is the TDS rate on Google Ads?

The applicable TDS rate is 2% of the invoice value, excluding GST.

Should GST be included while calculating TDS?

No, GST should not be included while calculating TDS on Google Ads payments.

How can I claim a TDS refund from Google Ads?

You need to submit Form 16A, Google Ads invoices, billing details, and other required documents to Google.

In what form is the TDS refund provided?

Google provides the TDS refund in the form of Google Ads promotional credits.

How long does it take to receive the TDS refund?

The refund is usually processed within 5–15 working days after document submission.

Disclaimer: This content is for informational purposes only and does not constitute professional tax advice. For personalized guidance, consult a qualified tax professional.