Tribunal held that when services were rendered as per the contract by accepting the placement fee or carriage fee, the fees were similar to the services rendered against the payment of standard fees paid for broadcasting of channels on any frequency. The placement fees were paid under the contract between the assessee and the cable operators. Therefore, the carriage fees or placement fees were not in the nature of commission or royalty. The Assessing Officer was directed to delete the disallowance.( AY.2013-14)
Star India P. Ltd. v ACIT (2020) 81 ITR 8 (SN) (Mum) (Trib)
S. 40(a)(ia): Amounts not deductible – Deduction at source –
Placement fees under contract between Cable operators —Neither commission nor royalty – Not liable to deduct tax source – No disallowance can be made . [ S.9(1) (vi ), 194C, 194J ]