Tds on revenue share for film sub-distributors

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Preksha (Querist)
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07 December 2011 Film distributors acquire movie rights from producers, in turn they license these rights to subdistributors entering in to a contract to use those rights in all the ways in which distributors can use. Subdistributors help them in getting the revenue share from the theatres by distributing the films prints to theatres located in their area of operation. In turn,subdistributors receive a share normally 10% from the collection after deducting the share of theatres in which movies are distributed.balance 90% share is given to distributors. on this share of 10% to subdistributors will the tds be applicable? May be as commission or any other section?
the argument is the above contract is on principal to principal basis. the share is termed as revenue share and not commission etc.

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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08 December 2011 9 In my opinion, Sec. 194C is applicable as the services provided by the sub distributor or licencee atre not covered under the definition of commission u/s 194H. Moreover, telecasting and broadcasting is specifically included in the definition of contract u/s 194C of The I. tax Act, 1961.

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