Service tax on film producer - urgent

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Ram chandran (Querist)

02 June 2015 Wether service tax applicable on temporary transfer of Display rights to theater. and also i want to know what kind of service tax applicable to film producers.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

02 June 2015 Cinematograph films:
Cinematograph film is defined to mean:
Any work of visual recording on any medium produced through a process from which a moving image maybe produced by any means and includes a sound recording accompanying such visual recording and “cinematograph” shall be construed as ncluding any work produced by any process analogous to cinematography including video films.
The print of the movie that is ready to be exhibited to the public is called as the cinematograph film. This will consist of the audio, video and music. The whole film registered as such shall be a copyright.
When this copyright is transferred temporarily to another person, this is presently exempted from service tax.

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Ram chandran

Ram chandran (Querist)

02 June 2015 Seetharaman Sir, thanks for the REply sir..... i also want to know , wethre selling the movie to TV channel will apply Service Tax?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

24 July 2025 Great question! Here’s the scoop on **service tax on selling a movie to a TV channel** under the pre-GST service tax regime in India:

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### Is service tax applicable on selling a movie to a TV channel?

* **Sale of goods is not subject to service tax**, it is under VAT or now GST.
* A **movie is treated as a ‘goods’** (intellectual property rights over a copyrighted film).
* When you **sell a movie (the copyright or distribution rights) to a TV channel**, it is essentially a **sale of goods (IP rights)** and **not a service**.
* Hence, **service tax is generally NOT applicable** on such transactions.

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### What if you provide related services?

* However, if you provide any **service like broadcasting, advertising, or renting of copyrights/licensing services separately**, those may attract service tax.
* Pure **sale or assignment of copyright** in a movie is not a service.

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### Summary:

| Transaction | Service Tax Applicability |
| ------------------------------- | --------------------------------------------- |
| Sale/transfer of movie rights | **No service tax (treated as sale of goods)** |
| Licensing/broadcasting services | Service tax applicable |

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### In short:

* If your contract is just for **selling/distributing the movie rights**, service tax is **not applicable**.
* If you provide a **service like broadcasting or license for temporary use**, service tax could apply.

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Let me know if you want more details or case references on this!

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