Question ID : 40623

TDS on sale and distribution of films

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 distribution of films is now 2% or 10%. Please clarify

posted by T.R.S. PATHY SENTHIL on Apr 10 2020 12:00AM