TDS on sale and distribution of Fillms, Income Tax

[Pathy Senthil]

Sale and distribution of films now included under royalty and hence TDS would be applicable. But the rate( 2% or 10%) is not clear after the amendment to Finance act 2020. Please refer below

As per the Finanace Act 2020,

In section 194J of the Income-tax Act, in sub-section (1),––

(a) in the long line, for the words “ten per cent. of such sum”, the words and brackets “two per cent. of such sum in case of fees for technical services (not being a professional services, or royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic films and ten per cent. of such sum in other cases,” shall be substituted;

So TDS for sale and distrubtion of films is now 2% or 10%. Please clarify

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

The rate of 2% is substituted for 10%. As per the amendment the TDS @ 2% is applicable for technical services. In other cases it is 10%.