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TDS on film distribution

TDS / TCS 2627 views 2 replies

 

Hi,

An Indian co. acquires the distribution rights from a Non - resident company for rights to distribute film in Indian territory. Does the Indian co.is required to deduct the TDS for making payment to the Non - resident?

Pls give your comment assuming that India has DTAA with county where Non- resident co. resides, if required  and reference of the case law if any.

Thnx in advance

 

 

Replies (2)
yes,you need to deduct tax . If the recepient is a non-corporate assesse Rate is 30.9% If the recepient is a non-domestic co Rate is 41.2% These are the rates mentioned in Finance Act,you should deduct tax on Finance Act or DTAA ,whichever is more beneficial to assessee.
Dear Tousif, TDS u/s 195 should be deducted if payment made to non -resident is chargeable to tax in India. Under which section of the Act you are saying that such sum is chargeable to tax under the Income tax Act and hence, TDS should be deducted?


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