Assessee, a film distributor, had paid an amount as Minimum Guarantee Royalty (MGR) for purchase of theatrical distribution rights.AO held that assessee had purchased copyright and said payment would fall within definition of Royalty and failure to deduct TDS as per section 194J would entail disallowance under section 40(a)(ia)\u00a0 of the Act. CIT(A) deleted the disallowance. On appeal by revenue the Tribunal held that\u00a0 copyrights are always with producer and distributor is only given right to exhibition of cinematographic films and, hence, such transactions do not attract provisions of\u00a0 tax deduction at source.\u00a0 (AY. 2011-12)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 194J : Deduction at source-Fees for professional or technical services-Distribution of film-Minimum Guarantee Royalty (MGR)-Copy right-Royalty-Right of exhibition of cinematographic films-Not copy rights hence do not fall under term Royalty-Not liable to tax deduction at source-No disallowance can be made. [S. 40(a)(ia)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-16694","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-4lg","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/16694","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=16694"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/16694\/revisions"}],"predecessor-version":[{"id":16695,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/16694\/revisions\/16695"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=16694"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=16694"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=16694"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}