Government auditor CAG today recommended tighter tax norms, including mandatory TDS, for the Indian cinema and television industry, which is estimated at over Rs 36,000 crore.

Concerned over tax evasion and the need to widen tax base, the Comptroller and Auditor General (CAG) in its report tabled in Parliament, suggested that payments for sale of distribution rights of films and time slots to television channels should be subject to the provisions of Tax Deduction at Source (TDS).

It would mean that entities making such payments would be required to deduct tax before making payments.

"...Provisions for deduction of TDS on sale of distribution rights and sharing of proceeds from exhibition of films may be introduced", the CAG recommended.

The government auditor further said that all persons and entities associated with film and televising industry should be assessed in the specially created Film Circles.