Dtaa

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2015 Mr. A, Has an artist management service, entered with Firm B, LLP, An event orgainser in USA, to appoint Mr.Shaantanu Mukhrajee (Shaan) perform in concert in California.

Mr. A had contract with Firm B that Firm B will directly Pay $3,00,000/- to Mr. Shaan & balance $50,000 to mr. A. Firm B has deducted withholding taxes on both payment. Mr. A will receive an regular contract from California in near future.

What will be the tax treatment of Mr. A & Mr. Shaan in india ( Both are resident)??

what if Mr. A received total payment of $3,50,000/- less Withholding taxes & Pay to Mr. Shaan.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 June 2015 See the applicable clause of DTAA between India and USA.
ARTICLE 15 - Independent personal services - 1. Income derived by a person who is an individual or firm of individuals (other than a company) who is a resident of a Contracting State from the performance in the other Contracting State of professional services or other independent activities of a similar character shall be taxable only in the first-mentioned State except in the following circumstances when such income may also be taxed in the other Contracting State :
(a) if such person has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other State; or
(b) if the person’s stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 90 days in the relevant taxable year.
As both are resident of India the income earned in USA is taxable in India.
Any withholding tax deducted can be reduced from the tax payable in India.
Doesn't make any difference if full payment is received by Mr. A.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2015 As Mr Shaan is a singer is article 18 applicable to him ?? Does the term 'Entertainer' includes 'Singer' ?