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TMI BlogLevy of ST post 1-7-12 on Film distribution, theatres etcX X X X Extracts X X X X X X X X Extracts X X X X ..... The assesee an Indian company procures film distribution rights under royalty agreement with foreign producers either on Minimum Guarantee (MG) or percentage basis. In turn the exhibition rights of these films are given to distributors in India also on Minimum Guarantee basis. These film rights are also given to TV channels or these films are also exhibited in Cinemas either on fixed rent basis o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sales revenue sharing basis. In Notification No. 25 , Exempt services u/s 66B , in clause (15). Temporary transfer or permitting the use or enjoyment of a copyright covered under clauses (a) or (b) of sub-section (1) of section 13 of the Indian Copyright Act, 1957 (14 of 1957), relating to original literary, dramatic, musical, artistic works or cinematograph films; Hence will such reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ues by the said Indian company from MG or otherwise attract ST @12.36 % ?? - Reply By Brijesh Verma - The Reply = Exhibiting in Cinemas is a negative list entry as the same is an entertainment event. Further Exemption is in relation to films being exhibited in theaters only and not on television.... - Reply By viswanathan RAVI - The Reply = Model Type of Model Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax Remarks and references First *** Exhibitor paying Fixed consideration to distributor/producer to exhibit the film in a theatre It is exempt vide Notification No. 25/2012 and High court Order. From 01.07.2010 onwards Snd Distributors/Producer paying fixed Rent t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the exhibitor ST attracted under Renting of Immovable Property Taxable from Feb 2009 onwards CBEC Circular No 109/03/2009 dated 23.02.2009 Third Distributors/producer sharing with Exhibitor the collection on a percentage basis Service tax attracted under Business Support Services Taxable from Feb 2009 onwards CBEC Ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcular No 109/03/2009 dated 23.02.2009 and Circular No.148/7/2011 dt 13.12.2011 *** However the Distributors becomes a service provider and has to collect Service tax on the Fixed Film Hire charges received from the Exhibitor. Hence in this model also there is levy of Service tax which ultimately to be borne by the exhibitor unless expressly ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reed to be borne only by the Distributor. - Levy of ST post 1-7-12 on Film distribution, theatres etc - Query Started By: - RAJESH SANGHVI Dated:- 24-8-2013 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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