Tax Liability

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Gaurav Manchanda (Querist)
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23 June 2009 We often see a small dog in vodafone advertisement. The company must be paying some fees for the acting of that dog in their ads. Whatwill be the tax liab. in case of fees paid for the use of dog? Who will be asessable under income tax for the fees paid to dog?

Sanjeev Jain

Sanjeev Jain (Expert)
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23 June 2009 See the facts which you are talking about is something like one someone appoint in a firm through consultants. When somebody appoints/recruit the person and will be entitled to claim fees from the co. and in that event their fees will become part of their business income and tax accordingly.
In the same manner any amount of fees paid to the dogs hire for adv. they will be taxed as business income (in the hands of recipient) according to sec.28 to sec 44AB and the party who will pay the amount to them will be liable to deduct TDS on the amount of exp. according to sec.194C of the income tax act.

Gaurav Manchanda

Gaurav Manchanda (Querist)
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24 June 2009 It's ok that co. will deduct TDS from that fees, but on who's name co. will deposit the tds amt. & issue tds certificate? Who will claim the TDS in the income tax return? We know a dog is not eligible to file income tax return as dogs are not defined in PERSON under income tax act

Gaurav Manchanda

Gaurav Manchanda (Querist)
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25 June 2009 It's ok that co. will deduct TDS from that fees, but on who's name co. will deposit the tds amt. & issue tds certificate? Who will claim the TDS in the income tax return? We know a dog is not eligible to file income tax return as dogs are not defined in PERSON under income tax act

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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26 July 2025 Haha, interesting question about the dog in the ad! 🐶

Here’s how tax works in such a quirky case:

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### 1. **Who gets paid?**

* The **fees are never paid directly to the dog**, obviously.
* The payment goes to the **owner/agent/trainer or an agency** that provides the dog for the ad shoot.
* So, the **income (fees) is received by a person or entity (the dog's owner/agency)**, **not the dog itself**.

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### 2. **Who is assessable under Income Tax?**

* The **owner/agency receiving the fees** is the one who must report the income as business or professional income.
* They pay tax accordingly, based on their total income.

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### 3. **TDS (Tax Deducted at Source) implications:**

* The company (Vodafone in your example) pays fees to the dog's owner/agency.
* The company must deduct **TDS under Section 194C (payment to contractors)** or possibly under other applicable sections if it’s a professional service.
* The **TDS is deposited in the name of the payee (owner/agency), and TDS certificate (Form 16A) is issued to that person/entity**.
* That payee **claims the TDS credit while filing their income tax return**.

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### 4. **No direct tax for the dog!**

* Since the dog is not a legal person or entity under the Income Tax Act, it does not have any tax obligations.
* All tax obligations are on the human/entity receiving the fees.

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### Summary:

* Payment → Owner/Agent/Agency (not the dog).
* Taxable income → Owner/Agent/Agency.
* TDS → Deducted and credited in owner/agency’s name.
* Dog itself → No tax or legal identity for tax purposes.

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So, the dog’s tax return is a **no-show**! 😄

Would you like me to explain TDS procedures in detail for such payments?

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