Service tax on Participant fees,

This query is : Resolved

ashish (Querist)
Follow

26 November 2008 We r in tv serial production, I have the quarry that,
Should we need to gross up the amount paid to participant as participant fees by ST,
And other thing is that TDS rate applicable is 2.06 or 10.3, means as per contract or professional fees,(Participant is not using any professional skill for such service, its like reality show,)
Pls help me out

G Muralidharan

G Muralidharan (Expert)
Follow

27 November 2008 Going by the Incometax Act, the above case does not fall under 194 J. The term professional are defined u/s44AA of the Act, which provides for Film Artists. Mere participant in reality can not be equated with film artists. Film artisits are those who perform several roles as per the demands of the story, and as per the directions of the Director, which requires a different set of skills and would fall under professional. But the mere participant in a reality show would not be a professional at any stretch of imagination.

ashish

ashish (Querist)
Follow

28 November 2008 thnq sir,
but TDS us 194c applycable..? or no need to deduct n e TDS

Upgrade to CAclubindia Pro. Subscribe Now!

G Muralidharan

G Muralidharan (Expert)
Follow

11 December 2008 Since they wont fall under 194 J and hence would come under 194 C