RULE 9 A INCOME TAX RULES

[sunil gupta]

RULE 9A PER MY KNOWLEDGE ONLY DEALS WITH FEATURE FILMS

AS RFEGARDS TV SERIALS PRODUCED AND TELECASTED ON A CHANNEL

HOW ACCOUNTING TO BE DONE DURING PRODUCTION  ADVANCES RECEVIED BY CHANNEL TO BE ADJUSTED AFTER TELECAST OR TO BE TREATED AS INCOME IN THE YEAR RECEIVED AS FAR AS FILMS ARE CONCERN COST IS TAKEN AS WORK IN PROGRESS AND IN THE YEAR OF RELEASE ADVANCES ARE TEKEN AS INCOME

[Surender Gupta]

The meaning scope of the term "feature films" can not be taken in such a narrow phrase. Though the same has not been defied in the Income Tax Rules or Income Tax Act, it is also nowhere defied that the scope is limited to a film which is not running into several parts like serials. 

However, your views are welcome.

AI Summary

Applicability of Rule 9A to feature films and serials affects timing of income recognition for production advances.
Whether Rule 9A applies only to feature films or also to television serials affects timing of income recognition: production costs are treated as work in progress and advances from channels may be recognised either when received or deferred until telecast/release; the term "feature films" is not defined in the statute, so its scope should not be presumed narrowly limited to single-part films.