TAX ON FOREIGN ARTIST PERFORMING IN INDIA
This query is : Resolved
24 May 2010
A CITIZEN OF UNITED KINGDOM, WHO IS NOT A RESIDEN IN INDIA, BEING A ARTIST (MUSICIAN) COMES TO INDIA AND PERFORM A SHOW FOR THREE DAYS QUESION IS :
1. AT WHAT RATE WE SHOULD DEDUCT TAX ?
ARTICAL 18 OF INDO UK DTAA DOES NOT LAID DOWN ANY TAX RATE BUT MAKES IT CLEAR THAT IT IS TAXABLE IN SOURCE COUNTRY (I.E. INDIA)
1. AT WHAT RATE WE SHOULD DEDUCT TAX ?
ARTICAL 18 OF INDO UK DTAA DOES NOT LAID DOWN ANY TAX RATE BUT MAKES IT CLEAR THAT IT IS TAXABLE IN SOURCE COUNTRY (I.E. INDIA)
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24 May 2010
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24 May 2010
THANKS YOU ARE RIGHT. THE REASONS ARE HEREIN GIVEN BELOW:
SINCE NO RATE IS SPECIFIED UNDER DTAA,(ARTICLE 18 OF INDIA-UK DTAA) TAX IS DEDUCTED AT THE RATE PRESCRIBED UNDER THE SCHEDULE I PART II OF THE FINANCE ACT, 2010.
UNDER SECTION 195 (i) INCOME TAX @30.9 % IS PRESCRIBED WHILE MAKING PAYMENT TO A NON RESIDENT & NON CORPORATE ASSESEE (OTHER PERSON)
SINCE NO RATE IS SPECIFIED UNDER DTAA,(ARTICLE 18 OF INDIA-UK DTAA) TAX IS DEDUCTED AT THE RATE PRESCRIBED UNDER THE SCHEDULE I PART II OF THE FINANCE ACT, 2010.
UNDER SECTION 195 (i) INCOME TAX @30.9 % IS PRESCRIBED WHILE MAKING PAYMENT TO A NON RESIDENT & NON CORPORATE ASSESEE (OTHER PERSON)
26 July 2025
You're absolutely on the right track. Let’s summarize and clarify the TDS and tax treatment for a foreign artist (non-resident, UK citizen) performing in India, especially with reference to the Indo-UK DTAA and Income Tax Act:
🎤 Case: UK Musician Performing in India
✅ Facts:
Individual is a UK citizen
Not a resident in India
Performs a show in India for 3 days
Income is earned for performance in India
Covered under Article 18 of the India–UK DTAA: Entertainers and Sportspersons
⚖️ Applicable Law:
1. Domestic Tax Law (Income-tax Act, 1961):
Section 195 mandates TDS on payments to non-residents if the income is chargeable to tax in India.
Since the artist is performing in India, the income accrues/arises in India → hence taxable in India.
2. DTAA – Article 18 (India–UK):
States that remuneration earned by an entertainer (e.g., musician) is taxable in the country where the activity is performed.
India is the source country, so it has taxing rights.
No concessional rate is specified in the treaty → refer to domestic rate.
💰 TDS Rate Applicable:
Since no special rate is given in the DTAA, you apply the rate under the Income-tax Act:
30% + applicable surcharge + cess
For FY 2024–25, this generally works out to:
30% + 4% cess = 31.2% (for individuals)
If the recipient is a company, higher surcharge may apply
✅ Therefore, TDS @ 31.2% should be deducted on the gross amount paid to the artist.
📌 Important Notes:
PAN not available? Then Section 206AA applies → TDS at 20% or higher of applicable rates → but in practice, 31.2% still applies as it's already higher.
Form 15CB/15CA compliance required for foreign remittance.
You may consider grossing up the income if you're contractually obligated to pay the artist net of tax.
📄 Summary Table:
Aspect Details
Artist Nationality UK
Nature of Income Income from performance in India
Taxable in India? ✅ Yes, under Section 9(1)(i)
Applicable DTAA Article Article 18 (Entertainers)
TDS Rate 30% + 4% cess = 31.2%
Section under which TDS? Section 195
PAN not available? Still 31.2%, as it's higher
Grossing Up Required? If net payout agreed in contract
Let me know if you want a sample TDS certificate, Form 15CA/CB guidance, or help with DTAA documentation!
🎤 Case: UK Musician Performing in India
✅ Facts:
Individual is a UK citizen
Not a resident in India
Performs a show in India for 3 days
Income is earned for performance in India
Covered under Article 18 of the India–UK DTAA: Entertainers and Sportspersons
⚖️ Applicable Law:
1. Domestic Tax Law (Income-tax Act, 1961):
Section 195 mandates TDS on payments to non-residents if the income is chargeable to tax in India.
Since the artist is performing in India, the income accrues/arises in India → hence taxable in India.
2. DTAA – Article 18 (India–UK):
States that remuneration earned by an entertainer (e.g., musician) is taxable in the country where the activity is performed.
India is the source country, so it has taxing rights.
No concessional rate is specified in the treaty → refer to domestic rate.
💰 TDS Rate Applicable:
Since no special rate is given in the DTAA, you apply the rate under the Income-tax Act:
30% + applicable surcharge + cess
For FY 2024–25, this generally works out to:
30% + 4% cess = 31.2% (for individuals)
If the recipient is a company, higher surcharge may apply
✅ Therefore, TDS @ 31.2% should be deducted on the gross amount paid to the artist.
📌 Important Notes:
PAN not available? Then Section 206AA applies → TDS at 20% or higher of applicable rates → but in practice, 31.2% still applies as it's already higher.
Form 15CB/15CA compliance required for foreign remittance.
You may consider grossing up the income if you're contractually obligated to pay the artist net of tax.
📄 Summary Table:
Aspect Details
Artist Nationality UK
Nature of Income Income from performance in India
Taxable in India? ✅ Yes, under Section 9(1)(i)
Applicable DTAA Article Article 18 (Entertainers)
TDS Rate 30% + 4% cess = 31.2%
Section under which TDS? Section 195
PAN not available? Still 31.2%, as it's higher
Grossing Up Required? If net payout agreed in contract
Let me know if you want a sample TDS certificate, Form 15CA/CB guidance, or help with DTAA documentation!
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