Payments for modeling services made to a film actor are not connected with production of cinematograph film. Therefore, sec. 194J not attracted on payments made to film actor for modeling services
In the instant case, the following issue came for consideration of Mumbai ITAT:
Whether payments made to actor-model for rendering modeling services are outside the scope of section 194J of the Act?
The Tribunal held in favour of assessee as under:
1) Professional services include profession notified under section 44AA, which defines film artist, to mean, inter alia, any person engaged in his professional capacity in the production of cinematograph film as an actor;
2) Total earning of a film actor for services rendered by him isn’t liable to tax deduction under sec. 194J. The payments attracting TDS under 194J are services specific and not person specific;
3) Modeling is display of merchandise. Acting on the other hand, means, to act in play or film i.e. to portray a role authored by a story-writer with different purposes and objects and not to display merchandise to boost sales of a manufacturer/trader of products or services; and
4) Therefore, as modeling payments have nothing to do with acting in a cinematograph film, no TDS liability attracts under section 194J on payments made to a film actor for modeling services - Kodak India (P.) Ltd. v. Dy.CIT [2013] 32 taxmann.com 88 (Mumbai - Trib.)
In the instant case, the following issue came for consideration of Mumbai ITAT:
Whether payments made to actor-model for rendering modeling services are outside the scope of section 194J of the Act?
The Tribunal held in favour of assessee as under:
1) Professional services include profession notified under section 44AA, which defines film artist, to mean, inter alia, any person engaged in his professional capacity in the production of cinematograph film as an actor;
2) Total earning of a film actor for services rendered by him isn’t liable to tax deduction under sec. 194J. The payments attracting TDS under 194J are services specific and not person specific;
3) Modeling is display of merchandise. Acting on the other hand, means, to act in play or film i.e. to portray a role authored by a story-writer with different purposes and objects and not to display merchandise to boost sales of a manufacturer/trader of products or services; and
4) Therefore, as modeling payments have nothing to do with acting in a cinematograph film, no TDS liability attracts under section 194J on payments made to a film actor for modeling services - Kodak India (P.) Ltd. v. Dy.CIT [2013] 32 taxmann.com 88 (Mumbai - Trib.)
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