query relating to tds

TDS 954 views 4 replies

whethar tds is deductible on film hire charges paid by a cineplex to the distributor?

Replies (4)

 

Yes u can deduct tds for firm u/s 194c

Originally posted by : pankaj

 

Yes u can deduct tds for firm u/s 194c

Film hire charges which you refer to in ur query, if it means the share of proceeds of exhibition of the movie which theatre owners normally pays to distributors, then the provisions of section 194-I are not attracted.

 

Therefore, Tax is not required to be deducted on such payments.

 

The Logic behind it & clarified by CBTD is as follows:

1.The exhibitor does not let out the cinema hall to the distributor.

2.Generally the share of the exhibitor is on account of composite services, and

 3.The distributor does not take cinema building on lease or sub-lease or tenancy or under any agreement of similar nature.

Circular: No. 736, dated 13-2-1996.

 

TDS NOT APPlicable .......here 194 I comes and not 194 C ......hwever TDS not req.to b done .....


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