No withholding tax liability in case of payment made to producers, directors, and actors for financing film production under sections 194C and 194J of

In a recent decision, in the case of Entertainment One India Ltd. Vs. ITO [2010-TIOL-210-ITAT-MUM] (“the assessee”), the Income-tax Appellate Tribunal, Mumbai (“the Tribunal”) has held that there is no liability to withhold tax under sections 194C and 194J of the Income Tax Act, 1961 (“the Act”) on payments made to producers, directors and actors for financing film production. Facts • The assessee made payments to various film and T.V. serial producers and directors under different agreements for production of films. Further, it acquired the entire rights ...