Google Ads TDS Refund: Full Process for Indian Advertisers

Shyam Singh
2 days ago
4 min read

How to Easily Claim Your Google Ads TDS Refund

Google Ads has assumed a significant role in nearly all practical Indian businesses, offering a platform for running online advertising campaigns. Therefore, since Google charges all business advertising for free in India, in some cases, advertisers are required to comply with Tax Deducted at Source (TDS) rules under the Income Tax Act.

The Most Important Issues Facing Advertisers

Google charges the total invoice amount inclusive of GST
If payment is made before deduction, TDS cannot be deducted.

This is because, once payment is made without deduction, the TDS must be paid from your own funds, even though, legally, it should have been deducted from Google’s payable amount.

The Great News

Google Offers TDS Refund Claims to Advertisers

This comprehensive guide provides all the necessary information on claiming your Google Ads TDS refund. It covers eligibility criteria, required documents, and a clear, step-by-step process to help you successfully obtain your refund.

Important: Free vs Paid TDS Software: Which One Should You Choose?

Is Tax Deduction at Source (TDS) Mandatory for Google Ads Payments?

Yes, under Section 194C of the Income Tax Act, Tax Deduction at Source (TDS) must be deducted if the following conditions are met:

If your annual Google Ads payment exceeds ₹1,00,000, you will be subject to the TDS threshold.
Any transaction exceeding ₹30,000 is subject to the single payment threshold.

What is the Applicable TDS Rate on Google Ads Payments?

The 2% Rate Applies Only to the Invoice Value Net of GST
Do Not Calculate TDS on the GST Component

Step-by-Step Process for Claiming Google Ads TDS Refund

How to Deposit TDS to the Income Tax Department

The Procedure for Depositing TDS under Section 194C Through the Challan Mechanism

How to File Your TDS Return

When filing your TDS returns, it is critical to ensure that the deduction entry is correctly linked to Google's Permanent Account Number (PAN), which can be found on your official Google Ads invoices.

Download Form 16A from the TRACES Portal

Simply log in to the TRACES portal, navigate to the relevant section, and download Form 16A corresponding to the required quarter.

Email All Required Documents to Google

Email Google at the following address: tds.certificates@google.com

Attach:

The following important documents must be included as attachments when sending your submission email. Please refer to the list below.

Form 16A
Google Ads invoices
Google Ads Account Number and Billing ID
Required Submission: TDS and Invoice Summary (Excel Format Recommended)
Contact information (phone number and email address)

Google Reviews Documents and Credits Your Refund

Next Steps Following Verification

Google will credit the refund amount to your ad account as advertising credits.
These Credits Can Be Used for Future Advertising Campaigns

What Are the Important Things to Remember?

Form 16A is mandatory for each refund claim.
It is essential to submit TDS certificates for every quarter.
Google accepts TDS certificates only for the current financial year.
TDS documents from the previous financial year must be submitted on or before 31 May.
It is mandatory to calculate TDS exclusively on the taxable value of the transaction, and never on the GST component.
TDS rate for Google Ads = 2%

Who is Qualified to Claim the Google Ads TDS Refund?

You are eligible to claim the refund if you meet the following conditions:

If You Are a Registered Google Ads Advertiser
Your Google Cloud Billing Account Has Been Closed
Ensure that Form 16A is submitted for the appropriate quarter.
Ensure that the TDS amount matches the values reflected in Google’s invoice.

Emphasis on Mandatory Timelines (Direct and Clear)

Quarter	Period	Last Date to Submit
Q1	April - June	July 30
Q2	July - September	October 30
Q3	October - December	January 30
Q4	January - March	May 15

The Final Submission Deadline

All TDS certificates for the previous financial years must be submitted by the specified deadline.
Missing deadlines can lead to the rejection of TDS refund claims.

Where to Submit Your Google Ads Tax Documents?

To complete your submission, send all documents to: tds.certificates@google.com

Include:

Let’s send all the documents, including the following steps:

Form 16A
Google Ads invoices
Google Ads account number
TDS summary (Excel format preferred)
Contact details

Understanding How You Will Receive Your TDS Refund Claim

Google has a policy in place to credit the Tax Deducted at Source (TDS) refund amount directly to your Google Ads account as advertising credits. These credits can be used to fund your upcoming campaigns, allowing you to bypass the requirement for a separate payment.

Official Source

To officially verify these details, we recommend consulting Google’s official resource page: "Taxes in your country – Google Ads Help.

Summary

Claiming a Google Ads TDS refund in India may seem complicated, but the process is simple once you understand the steps. Make sure to:

You deposit TDS correctly
Submit your TDS returns using Google’s PAN.
Download Form 16A
Ensure timely submission of documents each quarter.

Google will validate your documents and grant the refund as ad credits, thus reducing your advertising costs. By following this guide, Indian advertisers can effectively claim their TDS refunds while staying fully compliant with tax regulations.