TDS on participation fee for sport activity

TDS 15488 views 6 replies

Hi,

A vendor arranged sport tournament for 4 different companies and we need to pay participation fee to participate in that tournament.

Would TDS be applicable in that. If yes, then in which section.

Thanks

Pradeep Jain

Replies (6)

Please reply, it's urgent!!!!!!!

 

if the body who is organising the tournament is a professional body and rendering the services as professionals, then it will get covered u/s 194J (it will supersede 194C) (also take a safer view).

Otherwise, it will be pure contract and can get covered u/s 194C.

However, one should also take care of section 195 if the payment is made to a non resident...

aadhyayan @ gmail.com

But how can we determine that the body is a professional body.

We are not paying for organising an event, we are just paying for getting participation in the tournament.

As per my views it doesn't cover any type of contract.

Contract may be oral or written. In your interest get the things on paper for 2 reasons.

1 low rate of TDS under 194C than professional fees 194J

2 will help in resolving matters in case of disputes if any at later stage.

 

Regards

 

TDS on fees for Professional or Technical Services [Sec. 194J]:-

Any person and individual or HUFs whose books of accounts were required to be audited

during the preceding financial year, who is responsible for paying to a resident any sum by

way of fees for professional services, or fees for technical services or royalty shall be liable to deduct TDS at the rate of 10% of such amount.

No TDS will be deducted if amount payable does not exceed Rs.20,000/- during the financial year


“Professional Services” means:

services rendered by a person in the course of carrying on

a) legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or

  b) any other other profession notified u/s 44AA ; or

 c) any other profession notified for purpose of this section. The services notified u/s

 194-J are services rendered by following persons in relation to the sports activities:

 Sports Persons, Umpires and Referees, Coaches and Trainers, Team Physicians

and Physiotherapists, Event Managers, Commentators, Anchors and Sports

Columnists.

Hence Section 194J shall apply in your case.

 regards,

ratan

if the individual person doing for running event registration of Rs 1000/- or Rs 1500 there wont be any TDS on that for the same registration fees we are doing for offline for some 100 registration for that vendor has been deducted TDS of 10% is it TDS applies on the same please let me know & is ther any clause says that there is no TDS on individaul registration fees for any sports evnet.

 


CCI Pro

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