Rule 273 applies the same timing rules as rule 272 to a film distributor's cost of acquiring a feature film — deducted in full in the year of acquisition if all rights are sold or the film is released at least ninety days before year end, otherwise limited to amounts realised with the balance carried forward — with matching conditions on crediting receipts.
273
Rules 2026 · Rule 273
Deduction in respect of expenditure on acquisition of distribution rights of feature films
Rules 261-310
The cases (sub-rules 2 to 4). The rule mirrors rule 272 for the film distributor, by reference to the cost of acquiring the film in the tax year: full deduction that year if the distributor sells all exhibition rights, or exhibits or sells rights in some areas and the film is released commercially at least ninety days before year end; deduction limited to the amount realised (with the balance carried forward) if the film is not released at least ninety days before year end; and no deduction that year, with the full cost carried forward, if the distributor neither exhibits nor sells rights in the year.
Conditions (sub-rule 5). As in rule 272, the amounts realised or the minimum guarantee must be credited in the books of account for the year in which the deduction is admissible.
Meaning (sub-rule 6). Sale of exhibition rights includes lease or transfer on a minimum guarantee basis; rights are sold only when positive prints are delivered to the purchaser; "distributor" includes a sub-distributor; and "cost of acquisition" is the amount paid to the film producer or another distributor under the agreement for acquiring the rights (or the minimum guaranteed amount), excluding the cost of preparing positive prints and of advertisement.