Is service tax still applicable even if the right is given to satellites for an indefinite period of time (such that the producer has no right to the film)?
08 June 2016
Service tax on transfer of satellite rights of a feature film is subject to service tax under the head "Copyright temporary transfer". Even if the transfer is for a very long period say 99 years, even then it is temporary transfer - but if the transfer is perpetual, i.e. no further rights are retained by the producer for exhibition of the film, then the transfer will be perpetual - no service tax will be leviable but the transaction will be a deemed sale subject to VAT / CST.
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