Vide Circular No. 109/03/2009 New Delhi, 23rd February, 2009 it has been clarified that screening of a movie is not a taxable service except where the distributor leases out the theater and the theater owner get a fixed rent. In such case, the service provided by the theater owner would be categorized as ‘Renting of immovable property for furtherance of business or commerce’ and the theater owner would be liable to pay tax on the rent received from the distributor. however the facts of each case and the terms of contract have to be examined before a final view is taken.
For full text of circular click below:
http://www.servicetax.gov.in/st-cirmainpg.htm |