Clarification regarding applicability of provisions of section 194-I to film distributors and exhibitors
Circular : No. 736, dated 13-2-1996.
Representations have been received from the various quarters regarding applicability of the provisions of section 194-I of the Income-tax Act to the sharing of the proceedings of film between film distributor and a film exhibitor owning a cinema theatre. The matter has been examined by the Board and the Board are of the view that the provisions of section 194-I are not attracted to such payment because :