Royality amount -Music Director, Service Tax

[Thevarkonda Suresh]

Whether royality amount received by music director in india under Servicetax period is taxable

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[KASTURI SETHI]

Board's Service Tax Education Guide (Released on 1.7.12)

Guidance Note 7 - Exemptions

7.10.2 I am a composer of a song having the copyright for my song. When I allow the recording of the song on payment of some royalty by a music company for further distribution, am I required to pay service tax on the royalty amount received from a music company?

No, as the copyright relating to original work of composing song falls under clause (a) of sub-section (1) of section 13 of the Indian Copyright Act, 1957 which is exempt from service tax. Similarly an author having copy right of a book written by him would not be required to pay service tax on royalty amount received from the publisher for publishing the book. A person having the copyright of a cinematographic film would also not be required to pay service tax on the amount received from the film exhibitors for exhibiting the cinematographic film in cinema theatres.