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Accounting and taxation of cinema hall

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Kollipara Sundaraiah

B.com

3026 Points Posted on 07 February 2022

A person running a cinema theatre gst new registered in gst act recently.
question:
dealer accounting records and taxation(input and output itc claim procedure).

Replies (4)

Quick Summary

This discussion covers the accounting and GST implications for a newly registered cinema hall. It outlines key areas to consider, including the nature of the business (e.g., purchasing film rights vs. profit-sharing), various income streams like ticket sales and advertising, and necessary expense records. The guide also touches upon maintaining GST records as per the CGST Act, applicable tax rates, and the prevalence of B2C transactions, recommending professional advice from a CA and consulting ICAI guidance notes.

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 08 February 2022

First need to find the status of Cinema hall .Is it purchasing rights for motion pictures ?

Or Its just operating on behalf of another on % of profit basis ?

Category , retailer or distributor or producer ?

prasad Nilugal

GST Practitioner & Accounts

15150 Points Posted on 08 February 2022

Sales register
1) sale of tickets
2) Advertisement and exibition
3) restaurant sale
4)any other income .

5)Advance booking of tickets
6)stock of tickets at the end of the day
7)free pass record

8/) purchase expenses
payment made for Film hire
Bills of distributor
Advertisement expenses
repair and maintenance expenses
Other expenses

9) Fixed asset register
10) cash Bank records
11) payment and receipt records
12) any other tax collected

GST record to be maintained as per section 35 of the CGST act . GST will be applicable as rate proscribed . Most of the transactions will be B2C .

Take professional help from CA near by you .