Tds on payment to model
Querist : Anonymous
Querist : Anonymous
Querist : Anonymous
Please refer Circular : No. 715, dated 8-8-1995.
Link--
http://law.incometaxindia.gov.in/dittaxmann/incometaxacts/2008itact/Sec_194C.htm
See question No 1
Please correct me if i am wrong!!!
Querist : Anonymous
---
### Situation:
* **Garment company pays directly to models** for promoting their products (no agency involved).
* Question: Which TDS section applies — 194C (Contractor) or 194J (Professional fees)?
---
### What the law says:
* **Section 194C** covers payment to contractors for carrying out any work including advertising services if paid to an advertising agency.
* **Section 194J** covers fees for professional or technical services, including fees paid to artists, sportsmen, and technical experts.
---
### Specific to models:
* Models provide **personal services of a professional nature** (like artists or actors).
* When payment is made **directly to models**, this is **not a contract for “work”** (like construction or advertising agency services). Instead, it is a **professional service**, hence falls under **Section 194J**.
---
### Circular Reference:
* **CBDT Circular No. 715 dated 8-8-1995** clarifies this:
> Payments made to advertising agencies for advertising are covered under Section 194C (contract work).
> Payments made directly to models or artists for appearing in advertisements are covered under Section 194J.
You can check the circular [here](http://law.incometaxindia.gov.in/dittaxmann/incometaxacts/2008itact/Sec_194C.htm) — look for Question No. 1 under the explanation.
---
### Summary:
| Payment Made To | Applicable TDS Section | Reason |
| ------------------------- | ---------------------- | ---------------------------------- |
| Advertising Agency | Section 194C | Contract work/advertising services |
| Individual Models/Artists | Section 194J | Professional fees for services |
---
### Example analogy:
* Cricketers or Bollywood celebrities promoting a brand — payment to them is **professional fees** → TDS under **194J**.
* Similarly, models are treated as professionals for these purposes.
---
**So, in your case:**
Since the garment company pays **directly to the models**, TDS must be deducted **under Section 194J** (fees for professional services) at the applicable rate (usually 10%).
---
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