Dilip (Working) (408 Points)
22 June 2010If we are calling any celebrity to attain inaugrual function and cut the rebbon on opening of new store. so here my worry is this expenses will be treated under which head and at what rate TDS is applicable. If celebrity is Ordinary non resident then what will be the TDS rate ?
Thanks
$AcH!n G
(Still Running for My Destination)
(1036 Points)
Replied 22 June 2010
This exp. is treated as business promotion exp. n according to me it will not attract any TDS provisions.
Nima gopan
(2)
(48 Points)
Replied 22 June 2010
Dear Dilip,
What sachin told is correct according to my knowledge
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 22 June 2010
yes definately it is a business expense but having doubt in respect of tds.wait for other replies
CA Suri Kota
(Assistant Manager @ EY)
(955 Points)
Replied 22 June 2010
yes certainly it is a business promotion ....and it does not attract any TDS........
CA sumit chejara
(ca final)
(99 Points)
Replied 23 June 2010
Yes Dear its a Business promotion expenses. No TDS provisions will be Applicable
Praveen.S
(Accountant)
(47 Points)
Replied 23 June 2010
Yes Its treated as Business promotion expense.So, I think it will not attract any TDS provisions.
Amit Garg
(Service)
(22 Points)
Replied 23 June 2010
As per Explanation (a) to Section 194(J) professional services include advertising and as per Rule 44AA, any service regaring advertisement by film artists will fall under the definition of professional service and will atract to the provision of 194 J and for deduction of tds @ 10% flat. If the celebrity is a non resident and do not have PAN then the rate of TDS would be 20%.
CA Sanjay Jha
(ACCOUNTS MANAGER)
(914 Points)
Replied 23 June 2010
Sorry guys
I also agree with all that it is a business promotion expenses.
But if I have to paid any person a lump sum money i.e. definetely attract TDS its not differ it is Business promotion expenses or not.
secondaly if we have to paid as per any agreement to come my office cut the ribbon. The celeberity are cover under professional, So TDS definetely deducted.
If Celebarity is NON Resident it's also cover under TDS provision.
Mayank
(Sr.Accountant)
(152 Points)
Replied 23 June 2010
Hiiii
This is a business pramotion exps.& will not attract TDS......
Thanks
CA CS Ravi Mehata
(Chief Manager- Cost and Auditing)
(178 Points)
Replied 24 June 2010
hiiiiii
Its really a expenses done by us for promoting our business hence no need to worry for TDS Deduction,
Govind
(Professional)
(174 Points)
Replied 24 June 2010
Amount paid to celebrity will attracts TDS provisions u/s 194J irrespective of nature of expense
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 24 June 2010
Mr. Sachin is right........
It will be treated as Business Promotion Expense and will not attract TDS..........
vikas
(PCC )
(31 Points)
Replied 29 June 2010
Hi...
This is a business promotion expenses and no TDS will be attracted for the same....
Govind
(Professional)
(174 Points)
Replied 29 June 2010
it not relevant that expense is business promotion or other if nature of payment is one that specified in the TDS provision then TDS is deductable, therefore payment made to celebrity for his/her professional services thus TDS @ 10% deductable in every case.......................Check it
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