Case Law Details
M/s. Malayalam Communications Ltd. Vs ITO (TDS) (ITAT Cochin)
Conclusion: Payments made to various artists participating in reality show would fall under section 194C and not under section 194J and there was no infirmity in the action of AO as assessee had rightly deducted TDS u/s 194C.
Held: Assessee had deducted tax at source from the payments made to various artists like singers, musicians etc who participated in the reality shows as guests or judges, at 1% as per the provisions of section 194C of the Act on the ground that these payments were made as per the agreement entered into with the artists for production of the programmes meant for telecast by the assessee. AO observed that the payments had been made as remuneration for the service rendered by the artists and therefore could well be defined as payments for providing service which qualify for deduction of tax at source at 10% as per section 194J. It was held payments made to artists who participated in reality shows produced for television would fall outside the realm of section 194C r.w. Explanation III. It would fall under section 194C and not under section 194J. Since assessee deducted TDS u/s. 194C, there was no infirmity in the action of assessee.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal filed by the assessee is directed against the order of the CIT(A) , Trivandrum dated and pertains to the assessment year 2010-11.
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