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Service tax on cinema theatres

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Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2011 one of my client (FIRM) is the owner of cinema theaters, it let out to exhibits feature films, the rent is fixed on the profit sharing basis every week, in this case will the provision of service tax apply or not?

Pl clarify

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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30 July 2011 It depends on how the matter is placed before the S. Tax authorities. It there is rent agreement then it is covered if it is partnership agreement then not

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 July 2011 CBEC had given a clarification that screening of a movie would not fall under any of the taxable service & hence would not be subjected to service tax except where the distributor takes the theatre on lease & the theatre owner gets a fixed rent.

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