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Service tax applicability on film (movies) production

Deven (Practice) (96 Points)

08 August 2014

Whether service tax is applicable where assessee is sole proprietor and he is engaged in the business of production of film(movie) ?If yes, what are the criteria to levy tax on it ?Pls help on urgent bases.

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5 Replies

vivek (CA Final) (296 Points)
Replied 08 August 2014

I dont think that it would coverb under the defination of service, because production company is not providing any kind of service, they produce the film and sell them to distributors

Deven (Practice) (96 Points)
Replied 09 August 2014

But its a temporary transfer of copyright...

Gagan Deep Singh (CHARTERED ACCOUNTANT) (1190 Points)
Replied 12 August 2014

Temporary transfer for exibhiting films in a cinema hall is exempted & if it is for exibhiting on a TV Channels like sony then it is taxable.

Deven (Practice) (96 Points)
Replied 12 August 2014

Ok gagan deep singh ji, Thanx. Do u have any draft notification or judgement on the same.. If yes thn pls provide me

Gagan Deep Singh (CHARTERED ACCOUNTANT) (1190 Points)
Replied 12 August 2014

Notification No .25 of 2012 amended by Notification No.3 of 2013 w.e.f . 1.4.2013 and Entry No.9 in the notification No.25/2012 is substituted as under :-

"Services provided by way of temporary transfer or permitting the use or enjoyment of copyright

(a) covered under clause (a) of sub-section (1) of Section 13 of the Copyright Act, 1957, relating to original literary, dramatic, musical or artistic works; or

(b) of cinematograph films for exhibition in a cinema hall or cinema theatre."

Notification no. 25/2012 related to list of services exempted from service tax.

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