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Tds on singer payment

Manish (Propereitor) (41 Points)

02 December 2011

My company wants to organise live performance of a renowned singer. We have made agreement with him. Now If we pay his fees, is this payment fall under the purview of TDS. If yes then whether in Sec 194 C or 194 J. I am confused as singers are coveered u/s 44AA as artist, so whether to include as contractor or not?

Secondly, If this is covered as artist, then professional services of artist are covered when they sing in course of film making. So whether to deduct the same u/s 194 J or not?

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8 Replies

CA VISHAL RANA,CS,B.Com,AMFI (Chartered Accountant in Whole Time Practice) (4354 Points)
Replied 02 December 2011

1.manish you are required to deduct TDS u/s 194J

2. professional services means services rendered by a person in the course of carrying on legal,medical,engineering ,profession of accountancy or any other profession notified by the board for the purpose of sec 44AA.

3. so singer is covered as artist in sec 44AA so deduct TDS in sec 194j

Manish (Propereitor) (41 Points)
Replied 02 December 2011

Thanks Vishal,

But my contention is, if we consider him u/s 194 J, then professional services of artist (we include singer here) is considered only in course of film making. But, in our case It is for company's internal function and not any film or other professional activity of any singer.

CA VISHAL RANA,CS,B.Com,AMFI (Chartered Accountant in Whole Time Practice) (4354 Points)
Replied 02 December 2011

manish you right,but capacity of professional relevant...location where he is perform is irrelevant . in company function if he perform on his professional capacity then you are liable to deduct TDS u/s 194J.

debate is that find out whether he is taking assignment of singing as professional...or as friend/employee of the company.

but as per my practical view you shall deduct tds in sec 194J

(Guest)

Yes , concur with above reply .....payments should be covered under sec 194 J

CA PRASHANT KR MISHRA (AS A MEMBER IN CA FIRM) (249 Points)
Replied 02 December 2011

Mr. manish you are required to deduct TDS u/s 194J

Pranay kumar B (CA Final) (33 Points)
Replied 04 December 2011

Yes. Agree with Mr. Vishal Rana....

Brajesh gautam (student) (232 Points)
Replied 04 December 2011

Hi everybody

if that singer makes contract for 1 year with a company to perform then in which category it will fall

194 C or 194 J

Manish (Propereitor) (41 Points)
Replied 05 December 2011

Here it is confirm that TDS wd fall u/s 194J.

But the basic question remains the same, u/s 194 j TDs on payment to artist is to be deducted if paid in course of film making, but here we are not engaging him in any film making. So, do we need to deduct TDS in special event payment also?.

If yes pls provide the same with explanation, that'd be a help.