Guidelines regarding taxation of income of artists, entertainers, sportsmen, etc., from international/national/ local events

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..... 2. The events or shows normally involve an event manager, artists management or intermediate company. Their receipts may be of the following nature: (i) Sponsorship money; (ii) Gate money; (iii) Advertisement revenue; (iv) Sale of broadcasting or telecasting rights; (v) Rents from hiring out of space, etc.; (vi) Rents from caterers. In turn, the event manager, etc., may inter alia incur expenditure on guarantee money, prize money, rental for premises or equipment payments to labour contractor for decoration, salaries, royalties, fees for technical services, insurance premium for the event, etc. Such receipts and payments may be liable to deduction of tax at source under various provisions of the Income-tax Act, 1961. In the case ....

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....s of India or the income earned by non-resident sports association or institutions is required to be determined in accordance with the provisions of section 115BBA of the Income-tax Act, 1961. In the case of the sportsmen, this would include the income by way of participation in India in any game or sport, from advertisement or contribution to any newspapers, magazines or journal of any articles relating to sport or game in India. The tax should be deducted at source under section 194E from such payments. The provisions of section 115BBA would be applicable to the guarantee money receivable by the non-resident sports association. The payment by way of guarantee money to non-resident sport associations needs to be considered in terms of the ....

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....) Any consideration received by artists or performer for the live performance or simultaneous live telecast or broadcast (on radio, television, internet, etc.) in India would qualify as income and, consequently, should be taxable. Even, if separate consideration is received for simultaneous live telecast, etc., of performance, the same shall be taxable in India and is to be treated under the Article on Artists and Sportsmen in the DTAA. (iv) The consideration paid to the artists to acquire the copyrights of performance in India for subsequent sale abroad (of records, CDs, etc.) or the consideration paid to the artist for acquiring the license for broadcast or telecast overseas is not taxable in India due to exclusions provided in section 9....