Policy

‘Bring emerging segments of entertainment industry under the ambit of Form 52A’

Our Bureau New Delhi | Updated on July 08, 2019 Published on July 08, 2019

The Comptroller and Auditor General (CAG) has recommended bringing companies engaged in emerging sub-sectors of entertainment industry such as documentary production houses and event management firms under the ambit of Form 52A.

Form 52 A is the document that movie producers need to furnish for income tax disclosures.

It has also asked the Central Board of Direct Taxes (CBDT) to not only pro-actively pursue the receipt of Form 52A but also change the template of the form to include PAN of payees who received payments from movie producers.

A CAG performance audit report, which covered assessments of companies engaged in the entertainment sector such as television, radio, music, sports, films and animation among others was tabled in Parliament on Monday.

“A number of segments of the entertainment sector vis. sports, event management, artist, animation, cable business etc are clubbed under the business code 906 (Others (Entertainment Sector)), segment specific refinement of assesses may not be possible for selection under scrutiny and monitoring purposes,” the report noted.

In a bid to effectively utilise Form 52 A, CAG has recommended that CBDT should ensure that details of money earned by movie producers from various movie rights and overflows should be captured.

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Published on July 08, 2019
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