A non-resident individual, under the scheme of Income Tax Act 1961, becomes liable to tax in India in respect of income arising or accruing in India and income receiving or deemed to be receiving in India. For the taxability of income in India in case of non resident artist, sportsman or performer, the facts and circumstances of each event need to be considered.
â€¢ Artist performing in India gratuitously without any consideration there would be no income taxable in India.
â€¢ Where the artist performs in India to promote sale of his records and no consideration is paid for his performances by the record company or any other person then there will be no tax in India.
â€¢ Consideration paid to the artist to acquire any copy right of performances in India for subsequent sale abroad or consideration paid for acquiring the licence for broadcast or telecast overseas is not taxable in India.
â€¢ Consideration paid to the artist to acquire any copy right of performances in India for subsequent sale in India or consideration paid for acquiring the licence for broadcast or telecast in India is taxable in India.
â€¢ The part of endorsement fees which relates to the artistâ€™s performance in India shall be taxable in India.
â€¢ Any consideration received by an artist or performer for the live performances or live telecast or broadcast in India would be taxable in India.
However, the contracts of the artists or performers with event managers or sponsors are of vital importance in deciding the taxability of their income in India.
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