TAX ON FOREIGN ARTIST PERFORMING IN INDIA

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SHAILESH SANGANI (Querist)
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24 May 2010 A CITIZEN OF UNITED KINGDOM, WHO IS NOT A RESIDEN IN INDIA, BEING A ARTIST (MUSICIAN) COMES TO INDIA AND PERFORM A SHOW FOR THREE DAYS QUESION IS :

1. AT WHAT RATE WE SHOULD DEDUCT TAX ?

ARTICAL 18 OF INDO UK DTAA DOES NOT LAID DOWN ANY TAX RATE BUT MAKES IT CLEAR THAT IT IS TAXABLE IN SOURCE COUNTRY (I.E. INDIA)

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24 May 2010 30 %

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SHAILESH SANGANI

SHAILESH SANGANI (Querist)
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24 May 2010 THANKS YOU ARE RIGHT. THE REASONS ARE HEREIN GIVEN BELOW:

SINCE NO RATE IS SPECIFIED UNDER DTAA,(ARTICLE 18 OF INDIA-UK DTAA) TAX IS DEDUCTED AT THE RATE PRESCRIBED UNDER THE SCHEDULE I PART II OF THE FINANCE ACT, 2010.

UNDER SECTION 195 (i) INCOME TAX @30.9 % IS PRESCRIBED WHILE MAKING PAYMENT TO A NON RESIDENT & NON CORPORATE ASSESEE (OTHER PERSON)

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