Taxes applicable on payment to international artist

Hi,

We are an event management company who are in business of organizing concerts. We are planning to hire an international artist for performing in our upcoming concert in Hyderabad through an agency in US. Neither the agency or artist have an office or ST registration in India.

Payments will most probably be made directly to artists bank account in a bank in US not operating in India.

I want to know do we have to deduct a TDS on this payment and are we liable to pay service tax in India over and above the artist fee?

Thanks ,

MG

Replies (3)

i think your case falls in Rule 3 (Genral Rule) of Place of Provision os Service Rules, 2012 where location of Service receiver is the place of provision of service.

in your  case Artist (Service provider) providing service to you (Service receiver) & your location is in india (in taxable territory)  so service tax is applicable and in trems of revers charge you are laible to pay service tax (see Notification No. 30/2012-ST Dated 20-06-2012)

i would like to see opinion of other members also.

yes shiv prakash is correct and there liability to deduct tds @ 20.36%

It depends on how big is the payment, because TDS or Tax Deducted at Source is valid on Recurring Deposits and is deducted at 10% on the interest earned which exceeds Rs. 40,000. I almost got into financial problems a while ago, because I didn't know about this rule. We organized a concert in London, and we used mobile stage hire  services. After, when we wanted to make the payment, we didn't know that TDS has to be deducted, so when it all came out, my accountant and I had a lot of work to revise. This is done to protect the interest of lower-income investors, so still better than nothing.

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details