Tds on hire celebrity

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2015 Dear experts,
company is engaged in real state business. and the company is planning to hire the celebrity for the grand opening of project site, i have two following Query below mentioned.........
(1)will company be liable to pay ST on hire of any celebrity,
(2)how much TDS is to be made on payment made to celebrity and which section covered...

thanks & regard
Shreya bansal

Amol S Joglekar

Amol S Joglekar (Expert)

26 September 2015 TDS 194C or 194J as the case may be.

194C when the celebrity is signed through its advertisers having the rights to sign for and on behalf of the celebrity (This is very common in cases of celebrities like Amitabh, Saina, Sania, Mahendrasingh, Virat, Sachin and like celebrities)

194J if you are paying them directly.

Company is NOT liable to pay Service Tax on the same unless ofcourse the said celebrity makes it a condition of the contract

Rajesh Kumar

Rajesh Kumar (Expert)

26 September 2015 Service Tax is payable as the services provided by celebrities is not covered under negative list. However, liability to pay Service Tax is on the service provider. He is required to charge service tax and pay. Off course if such service tax is charged from you, you shall be eligible for cenvat credit.
The payment made by you s subject to TDS under Section 194J of the Income Tax Act.

RAHULSMITTAL

RAHULSMITTAL (Expert)

26 September 2015 Service tax liablity is on celebrity itself and tds on service reciever. I agree with Rajesh ji

Amol S Joglekar

Amol S Joglekar (Expert)

26 September 2015 No any doubt about the onus of liability of service tax.
There are celebrities who make it a point in the terms and conditions of the agreement that the service tax payable on this agreement shall be paid by the xxxxxxx and not the celebrity.

Rajesh Kumar

Rajesh Kumar (Expert)

26 September 2015 Liability of any tax is determined by law. Private contracts cannot alter the incidence of any tax. Liability to pay Service Tax is on service provider, and irrespective of any contract it has to be discharged by the service provider.

Amol S Joglekar

Amol S Joglekar (Expert)

26 September 2015 except in reverse charge mechanism.
and as i said above...service tax is paid by Service Provider but BORNE by service receiver.

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