Hello friends, how are you all?
Welcome to our new episode of Dharamvayee
We were discussing about TDS
We had collected knowledge on many sections
We read many good sections and our last section 194DA we
had talked a lot about knowledge
When is LIC money taxable, when not taxable
All these things were covered in our last lecture
Sir, today is a new day, a new morning a new lecture
The name of the section is 194E
It is a very interesting section
Keep listening to me
It is a very interesting section
Section 194E
Payment to the non-resident sportsman or to any sports
association or to any entertainer
What am I saying?
You have paid to a non-resident sportsman
Non-resident sportsman like an outsider cricketer
I have made a photo of him, what is his name?
Lasith Malinga
He was a famous cricketer of his time
I remember very well, the 2011 World Cup match
It was the final match of India-Sri Lanka
There were many expectations from Sehwag and this guy took
Sehwag's wicket in the first over
At that time, Sehwag's wicket was the same as Rohit
Sharma's wicket
Now this guy was out on 0
I am not praising him, I am not making any enmity
I am just telling you the level of this cricketer
Lasith Malinga, his hairstyle was also very famous
He used to have green hair and sometimes he used to have
blue hair
What am I saying?
He is either a non-resident or a sportsman or a sports
association
What does sports association mean?
Sports association is like a cricket board Like Cricket
Australia
You must have heard of it
Cricket Australia
Have you heard of it?
Have you heard of PCB, Pakistan Cricket Board?
These cricket boards are of different countries
South Africa is different, New Zealand is different
Sri Lanka is different
What is ours? BCCI
Or a non-resident, there is also an entertainer There will
be a cover on this
A non-resident is an entertainer
Entertainer means a person who sings and dances
A person who sings and dances
entertains people
Like if Akshay Kumar goes to a wedding and starts
entertaining
He does it
He takes 1-2 crores and goes to the wedding for 1-2 hours
He comes back after dancing, he says his dialogue He comes
back after dancing
He is an entertainer
But who are we talking about? Are we talking about a
resident entertainer?
Are we talking about a resident sportsman?
Are we talking about Rohit Sharma?
Are we talking about Malinga?
This is a section on non-resident people
Non-resident is a sports association
Non-resident is a sportsman
And the entertainer is also a non-resident
Non-resident entertainer
The biggest non-resident entertainer in the world
Who used to have a fee of crores of rupees
For a 15-minute dance performance
That was Michael Jackson
I remember Michael Jackson very well
We used to be kids
We used to bring a CD of Michael Jackson's songs
Great CD, great dance
Non-resident entertainer
He used to go to different countries
And he used to perform at functions and award shows
Non-resident entertainer means Shakira
You can take Shakira's example
Will Smith, an actor from there
Tom Cruise has started coming here, for example
In India
What are we talking about?
Are we discussing all this?
We are just talking about
How TDS provisions are imposed on them
If a non-resident entertainer comes to India
He sings and dances at a wedding, wedding function,
birthday party
He gets some income from there
He has income for that
So he will have to pay income tax on that income
And the government is greedy
The government will say
You will go and pay income tax next year
It is better that you get your TDS cut this year
You are already a foreigner
You are already a non-resident
You will take income from here and run abroad
Where will we catch you next year?
How will we know where you are functioning in which country
next year?
We don't even know where you live
How will we catch you?
How will we recover tax from you?
Now if Malenga plays cricket in India
For example, he plays IPL here
He got money from IPL
If he is told
Malenga, next year you have to pay tax on this money He
will run away
He will run away, he is not even going to pay
Why will he come back to pay tax?
He will say, I don't come
This is the last IPL, once I play IPL
I will take money and run abroad What will you do with me?
That is why the government says
They are foreigners
Once you are a foreigner, you are a foreigner
You are a foreigner
Is it true that I gave you my heart?
I didn't know you were a foreigner Leaving TDS
In this case, the government
Recovers their TDS only
When they receive the payment
The person who pays them
He will cut their TDS by 20%
If for example
Michael Jackson comes here
To dance
If we would have paid him 1 crore
Then the TDS of 20 lakhs
Would have been deposited in the government's account
Who? The person who is paying him
The person from India
Who will pay Michael Jackson
Out of that payment, 20 lakhs
He will deposit in the name of TDS
And not only this 20% is there
Other than 20%, there is a 4% surcharge
He will deposit the money
In the name of Michael Jackson
Basically, all the taxes
Will be deducted
Now the money received by Michael Jackson
Will be deducted by TDS
Even if he wants to run away
And doesn't come back to deposit taxes
The government has 20%
This is the cunningness of the government
Let's discuss
Non-resident sportsmen
Sports associations
Like Cricket Australia
Or Non-resident entertainers
What are their incomes
On which you have to deduct TDS
It's a very simple concept
The rate of TDS is 20%
Plus surcharge of 4%
Add this in 20%
Time of deduction
At the time of credit
Or at the time of payment
Whichever is earlier
You make a payment
When you have made a payment
Then deduct TDS
If you haven't made a payment
You have taken that person's money
But you have shown him an expense
In your books
You have done a credit entry pass
You have done a general entry pass
At that time, your liability of TDS
At the time of credit or payment Whichever is earlier
At that time, your liability of TDS At that time, you have
to deduct TDS
At that time, you have to deduct TDS
Income referred to in 115 BBA
What are the incomes
Non-resident sportsmen income Non-resident sportsmen income
Where can he earn money
He has covered all the sources
He is a sportsman from abroad
He will earn money by playing here
He will earn money by playing cricket
Or he can come here and advertise
If we take him in an ad
As you remember
Kingfisher's ad used to come
I remember it well
There were many foreign cricketers
Royal Challengers
RCB's ad used to come
And Vijay Mallya
Was the owner of the team
It used to say
United by teams and united by Kingfisher
It used to say
I remember it well
So what we used to do in that case
We used to take foreign cricketers on the ad
So their income is also coming from the ad
And when the income is coming, TDS will also be deducted on
it
At what rate will it be deducted
At 20% rate
See what he is saying
Income received by non-resident sportsmen
Who is not an Indian citizen
By way of participation in any game
Or sports in India
Or he earned money from the ad
It came in Kingfisher's ad
Earned money from the ad
Or He has written some articles
For some magazine
It happens many times
He was asked by Malinga
Forget cricket
Now tell me
How did you grow your hair
We have a hair magazine
Hair magazine There is a fashion magazine which does
research on hair.
Please tell us the secret of these beautiful hair.
Then he will also come and say,
My hair is safe and black.
Westmall has done a great job.
Assume that he is getting some money from there.
He is getting some money to write an article.
So contribution of article relating to game or sports in
India.
In newspaper, magazine or journals.
Contribution of the article relating to any game, sports.
Game or sports.
Regarding, if you write an article.
It will be covered here.
Sir, this Westmall, Westmall will not be covered.
But where will this Westmall be covered?
Westmall will be covered in advertisement.
Because you have done directly or indirectly advertisement
of Westmall company.
You were asked that how are your hair so thick?
So you said, my hair is safe and black.
Westmall has done a great job.
So by taking the name of Westmall, you have done its
advertisement.
So in that case also,
When you will receive income, 20% TDS will be cut.
When you write an article for any sports magazine.
You receive income from there.
In that case also, TDS liability will come on you.
This is the case of Malinga.
Who is Malinga? Non-resident sportsman.
Come to another.
What is this?
This is sports association.
Sports association.
For example, does sports association also get money?
In case of sports association, does sports association also
get money?
Why not?
If for example, Indian-New Zealand series of cricket is
going on.
In that case, a minimum guarantee amount.
It is called MG in business terms.
Minimum guarantee amount is paid by BCCI.
Who? New Zealand Cricket Board.
Do you come to our country and play cricket?
By chance, if for example, there is a series of 3 matches.
Not a single match is played.
There is a rain in the country.
There is a storm.
There is a drought.
The country is closed.
Corona has spread.
The New Zealanders who have come from there like
chimpanzees.
New Zealanders have come here.
As soon as they land at the airport.
It is known that corona is spreading in the country.
Then why corona?
Go back.
The poor people who have come with tickets.
The whole team has come together.
They have spent.
In this case, they have a minimum guarantee contract.
They say that you have spent.
We accept this.
That is why we give you a minimum guarantee amount.
Whether you play or not.
You will get this much money.
You have come to the airport.
You have flown from there.
Like kangaroos.
You have come while jumping.
It was difficult for you to handle in the airplane.
You were jumping there too.
We are decent.
We did not say anything to you.
But it will not match here.
Because corona is spreading in the country.
Corona is spreading in the country.
It will not match.
But because you do not have a loss.
That is why we will give you a minimum guarantee amount.
So the minimum guarantee amount.
BCCI is giving to the New Zealand Cricket Board.
TDS will be cut on it too.
I told you that.
I told you about the income of the sports association.
They are spending.
The New Zealand Cricket Board.
They spend on their players.
They get jerseys.
There are bats.
There are balls.
There are shoes.
They are spending all this.
It is the hotel's expense.
The hotel's booking is already done.
The team is going to come to this hotel after 2 months.
The booking is already done.
The booking for transportation is done.
The team has spent everything here.
You will come to know that it is not matching.
In that case.
Whatever minimum guarantee you pay.
Non-resident sports association.
You have to cut a TDS of 20% on it.
And not only 20%.
4% surcharge will also be done.
Come to the third point.
And what is the last point?
The income received by the non-resident entertainer.
Who is not an Indian citizen.
From the performance in India.
It is the same case.
There is a marriage.
A businessman got married in Jodhpur.
He invited Shakira madam to his wedding.
Shakira will come.
She will dance.
And we will celebrate.
Now what is Shakira doing?
She is giving a dance performance.
Where? In India.
So the payment that I will give to Shakira madam.
I will be held responsible.
To cut the TDS and pay.
If I will pay 1 crore.
Then I will cut 20% TDS on 1 crore.
And 4% surcharge will be done.
Rest of the money I will give to Shakira.
In that case, there will be no difference to the government.
Why not?
Now suppose if Shakira does not come to pay the tax next
year.
Then the government will get the tax of 20% today.
See how clever the government is.
That she is a foreigner.
You are a foreigner.
How will you support us?
You will return home in the morning.
Now suppose if you return tomorrow.
And if you do not return on time to pay the tax.
Then will we go abroad to beg from you?
Will I sit outside Shakira's house and eat?
Shakira Hai Hai.
No right?
That is why the money that I am earning today.
The source from where I am earning the money.
Catch that source.
Tell him to cut the tax.
And deposit it here.
This is a simple point.
Non-resident sportsman.
Non-resident sports association.
Non-resident entrepreneur.
The money that you earn from India.
You earn money from advertisement.
You earn money from articles.
The money that you earn from here.
Tax will be cut on it.
Either at the time of credit.
Or at the time of payment.
Whichever is earlier.
This is the point.
I hope the point is clear.
We will meet in the next lecture.
Thank you very much.