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TDS on Event Management Services

NITIN PATODI (PRACTICING CA) (38 Points)

04 January 2008

One on my client has taken Event Management Services from a company, who is engaged in this activity only. A contract is entered with such company to organise various events. Now my query is whether TDS is to be deducted under sec 194 C or under sec 194 J.

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12 Replies

nageswararao (Mgr - Commercial) (142 Points)
Replied 04 January 2008

It's a Contract, so TDS rate is under 194c only B.V.K.Nageswara Rao Ph: 099891 57666 Mail: nageswararao.bommakanti @ ril.com

(Guest)

Originally posted by :nageswararao
"	It's a Contract, so TDS rate is under 194c only B.V.K.Nageswara Rao Ph: 099891 57666 Mail: nageswararao.bommakanti @ ril.com	"

dear sir,

i m aditya bansal from below the line from gurgaon. basically we provide services to our clients IBM daksh process services pvt ltd and deduct TDS treted as professtional

services @ 10 or 11 % . they sometime deduct tds as professional or sometime as contractors then i have to prove that we are under contract to them.

so i want to prove my point....

regards

aditya bansal

Below the line entertainment

mail us at : accounts @ belowtheline.org

plz send us as much as possible..

Mukesh (Private job) (22 Points)
Replied 23 January 2009

Dear Sir,

I am Mukesh Kumar from 6th Gear Entertainment from New Delhi. Basically, our Company provides Event Management Services to our Clients. they deduct tds @ 10.33% treated as professional services. But its a contractual work in our point of view.

You are requested to kindly mail any circular or suggation so, we can prove our point to our clients.

Kindly treat the matter most urgent.

Regards,

Mukesh

Sripada M (CA) (365 Points)
Replied 23 January 2009

Hi All,

Event Management Services can be for Contract. But according to me TDS has to be deducted at 10% or 11% as it is a professional service.

It is better to deduct more tax to be on a safer side.

Biswanath (CA final stude) (56 Points)
Replied 23 January 2009

Hello everybody, as event mgt is a contract Tds rate as per Section-194c is applicable

Sagar (B Com, ACA) (44 Points)
Replied 13 April 2011

The best way to make a differciation in 194J and 194C is to bifurcate between Contractual amount and professional Charges. I.e. Procure a bill from the event management in a way which specifies Total amount towards contract expenses (which will attract TDS @ 2%/1% u/s 194C) and Event Management Charges (Which will attract TDS @ 10% u/s 194J)

Thanks

1 Like

Manjunatha A P (Senior Officer Accounts) (21 Points)
Replied 28 March 2012

event management service inclusive of professional service and contract service, hence we need to deduct 10%tds.

CA KARAN MAINI (Practising CA) (106 Points)
Replied 17 December 2013

Event management service provided is subject to tds as professional services @ 10%us 194J depending upon the nature of business of assessee. If assessee is engaged in the business of event mgt. Services to its clients its a professional income or otherwise paid on the basis of contractual agreement it is subject to tds @ 2% or 1% as the case may be.

1 Like

Ajay (CA Job) (512 Points)
Replied 17 December 2013

Dear Nitin

"Event Managers" in relation to sports activities falls under the "notified professional services" u/s 194J folllowing the Notifcation no.88/2008.

Taking cue, it is better to deduct tax @ 10% u/s 194J rather than u/s 194C in case of other event managers too.

Relevant Notification No.88/2008 is given below:

"In exercise of the powers conferred by clause (a) of the Explanation to section 194J of the Income-tax Act, 1961, Central Board of Direct Taxes hereby notifies the services rendered by following persons in relation to the sports activities as “Professional Services” for the purpose of the said section, namely :—

u Sports Persons,

u Umpires and Referees,

u Coaches and Trainers,

u Team Physicians and Physiotherapists,

u Event Managers,

u Commentators,

u Anchors and

u Sports Columnists.

2. This notification shall come into force with effect from the date of its publication in the Official Gazette - Notification No.88/2008

Regards

Ajay

1 Like

CA KARAN MAINI (Practising CA) (106 Points)
Replied 17 December 2013

Dear Ajay sir, can event organising and management for debate competition be treated as professional services on the plea of notification no. 88\ 2008 related to sports events activities as professional services?

Sanjay Suryavanshi (Service) (0 Points)
Replied 27 June 2023

Event organizing and management for a debate competition can be treated as professional services.

Mitali (Finance Professional) (10426 Points)
Replied 22 November 2023

Nature of Payment:

Event Management Services fall under the category of professional services.
Payments made for such services are subject to TDS under Section 194J.

TDS Rate:

The current TDS rate under Section 194J for fees for professional or technical services is 10%.
However, if the payee has not furnished their PAN (Permanent Account Number), the TDS rate increases to 20%.

Threshold Limit: