Pakistani and other foreign artists who come to India for working in Indian films and other stage shows charging fees are subjected to income tax as per Indian rules. These artists are subjected to tax in India as per Double Taxation Avoidance Agreements (DTAA) with concerned countries or the domestic tax laws, whichever is beneficial to them. However, the Government does not maintain country-wise segregated information about tax paid by artists of foreign countries including Pakistan, performing in India.

The payer is liable to deduct the tax at source while making payments to artists of foreign countries including Pakistan, where the income is chargeable to tax under the Income Tax Act and applicable DTAA.

This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

Taxation of foreign artists: payers must deduct withholding tax on India source fees, subject to DTAA benefits. Foreign artists performing in India are taxable under applicable Double Taxation Avoidance Agreements or domestic law, whichever is more beneficial, and the payer is obliged to deduct tax at source where the income is chargeable in India; government records are not maintained on a country wise basis for taxes paid by such artists.