Tax Liability

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Gaurav Manchanda (Querist)
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23 June 2009 We often see a small dog in vodafone advertisement. The company must be paying some fees for the acting of that dog in their ads. Whatwill be the tax liab. in case of fees paid for the use of dog? Who will be asessable under income tax for the fees paid to dog?

Sanjeev Jain

Sanjeev Jain (Expert)
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23 June 2009 See the facts which you are talking about is something like one someone appoint in a firm through consultants. When somebody appoints/recruit the person and will be entitled to claim fees from the co. and in that event their fees will become part of their business income and tax accordingly.
In the same manner any amount of fees paid to the dogs hire for adv. they will be taxed as business income (in the hands of recipient) according to sec.28 to sec 44AB and the party who will pay the amount to them will be liable to deduct TDS on the amount of exp. according to sec.194C of the income tax act.

Gaurav Manchanda

Gaurav Manchanda (Querist)
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24 June 2009 It's ok that co. will deduct TDS from that fees, but on who's name co. will deposit the tds amt. & issue tds certificate? Who will claim the TDS in the income tax return? We know a dog is not eligible to file income tax return as dogs are not defined in PERSON under income tax act

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Gaurav Manchanda

Gaurav Manchanda (Querist)
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25 June 2009 It's ok that co. will deduct TDS from that fees, but on who's name co. will deposit the tds amt. & issue tds certificate? Who will claim the TDS in the income tax return? We know a dog is not eligible to file income tax return as dogs are not defined in PERSON under income tax act