07 September 2009
We buy right in films and further sell those right, it may be possible that all the right in relation to a single movie was sold in one go or sold to different persons in different year for different language / songs etc. All is done well before 90 days of end of financial year.
1. in above situation if one language was sold to one and other was sold to another in next year that will there be any need to Carry forward the value to stock
2. while drawing P & L account the receipts from sale of above under what accounting head the revenue should be shown whether sale of films or royalty received.
3. What would be limit of tax audit 40 or 10 lacs
4. why TDS is deducted by the party who is purchasing the films.
5. what is status of applicability of VAT on this industry
6. Some times cash payment exceeding 20000/- is made for purchase of rights what will be status of its allowbility.
CAclubindia
