TDS provisions applicable

Mr. Sam (aged 40 years), a US football match referee, has earned income from football tournaments in India for A.Y. 2021-22. Are TDS provisions applicable while making payment to him and if so, under which section?

Replies (5)
Quick Summary
This discussion clarifies the applicability of Tax Deducted at Source (TDS) provisions when making payments to non-resident referees for services rendered in India. While Section 194E might seem relevant for non-resident sportsmen, payments to referees are generally covered under Section 195 if the income is taxable in India. The specific details of the agreement and the nature of engagement are crucial in determining the correct TDS section and rate.

Hi,

Yes Under sec 195

Section 194E should be applicable for payment to NRI sports person.

If the provisions of section 194E of the Income Tax Act, 1961 gets attracted in a given transaction, then, the Deductor is required to deduct TDS within earlier of the following dates –

At the time of payment in cheque, draft, cash or any other mode; or
At the time of credit of the income to the account of the recipient.

The Deductor liable to deduct TDS under section 194E is required to deduct TDS @ 20%
Payments to an umpire/referee do not come within the purview of section 115BBA or 194E. Payment to a resident umpire is covered by section 194J and payment to a non-resident umpire is subject to tax deduction under section 195 if it is taxable in India in the hands of non-resident umpire in India.
There are two types of engagement one is for professional services another under fixed salary.
Both of them can happen but since the querist has not mentioned anything .
Details of the agreement between the referee and deductor is required.
Extract of Section 194E of Income Tax Act, 1961

194E. Where any income referred to in section 115BBA is payable to a non-resident sportsman (including an athlete) or an entertainer who is not a citizen of India or a non-resident sports association or institution, the person responsible for making the payment shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of twenty per cent.

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