Clarity needed on taxing of non-resident performers

Lately, tax controversies have thrown open the debate on taxability of non-resident entertainers and sportsperson performing in India. In an isolated instance, Indian taxman prevented famous Puerto Ricon singer Ricky Martin from leaving the country on the pretext that he had failed to discharge his obligations under laws of land. Though, this event occurred in 1998 and Ricky Martin managed to leave the country with some anxiety, we seem to be grappling with a framework to deal with such situations. More recently, with the advent of Indian Premier League (IPL), the issue of taxability of non-resident sportspersons has invited attention of Revenue. Taxing debate – what is the ‘fuss’ The provisions for taxation of non-resident artiste and sportsperson are specifically enshrined in the law which provides that income derived from participating (in India) in any sports event would be subject to tax