About taxability of service

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

Shantanu Hundekari

Shantanu Hundekari (Querist)

13 July 2010 I want to know whether distribution of films is liable for service tax?

Porwal Consultancy

Porwal Consultancy (Expert)

13 July 2010 yes

CA Shiv

CA Shiv (Expert)

13 July 2010 Yes as of now... This lead to double taxation... VAt and service tax.. very soon it will be taken out of it.
ervice providers can look forward to availing of the benefit provided by Notification No. 12/2003-ST dated 29th June, 2003, in terms of which, a service provider selling goods as part of the service provider, is entitled to claim an exemption from the service tax levy, on the value of the goods sold as confirmed by documentary evidence. However, we should expect the Department to work towards refusing to extend the benefit of this Notification to the film distribution and health care sector on some pretext or other. Once these proposals are confirmed in the statute book, service providers and especially the hospitals and clinics, would need to put in systems and procedures to bifurcate the value of the medicines and goods sold by them so that, the benefit of Notification No. 12/2003 can be taken.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now