exp. of film distributor

1.whether expenditure incurred on advertisment before the release of the film but after it is certified by Board of Film Censors is allowable as deduction under Rule 9B of Income tax rules?

2. Which are the perquisites taxable in the hands of employees consequent to removal of FBT? How to compute the same?

Replies (1)

Dear Friend,

Advertisment expenses doesnot fall within the meaning of "Cost of Acquisition" as defined by explanation of Rule 9B -

For the purposes of this rule, “cost of acquisition”, in relation to  a feature film, means the amount paid 21[by the film distributor to the film  producer or to another distributor under an agreement entered into by the film distributor with such film producer or such other distributor, as the case may be] for acquiring the rights of exhibition and, where the rights of exhibition have been acquired on a minimum guarantee basis, the minimum amount guaranteed, not being—

           (i)  the amount of expenditure incurred by the film distributor for the preparation of the positive prints of the film; and

          (ii)  the expenditure incurred by him in connection with the advertisement of the film.

 

2) Regarding valuation of perks, plz find the attached file

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
07 August 2026
Chartered Accountant

Devesh Garg and co

New Delhi

CA

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

Jain Ankit and Co

Gurgaon

CA Inter

View Details
Company
21 August 2026
Finance Manager

Resollect Technologies Pvt Ltd

Mumbai

CA

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
18 August 2026
Audit Assistant - Remote / Work From Home

CA ANOOP P K & ASSOCIATES

Kozhikode

CA Inter

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details