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Rent on cinema , film

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Atika Agarwal

Partner

21 Points Posted on 10 October 2012

Dear All,

I have a query regarding my client who is the theatre owner , he gets rent from the distributor . The distributor leases out the hall for screening the movie . The profit or loss for screening the film is borne by the distributor . here the theatre owner is responsible for service tax under renting of immovable property ..Is there any way my client can claim a refund or any other way he can utilize service tax.

thanks

Replies (1)

CA Unnikrishnan Nair N

Chartered Accountant

2114 Points Posted on 11 October 2012

Your client is provider of service. He can claim cenvat credit in respect of input servies viz. maintenance of the theatre and similar services availed by him. Distributor is receiver of the service provided by your client. He can claim credit of the tax paid by your client if the same constiutes input service in relation to any other output service provided by the distributor