Regarding clarification on levy of service tax on distributors/sub-distributors of films & exhibitors of movie

Copyright service taxation applies where copyrights are temporarily transferred; revenue-sharing may attract business support or renting classification.

Temporary transfer or permitting use of copyright by a distributor or transferee to an exhibitor is taxable as copyright service, and the transferor must collect and remit service tax. If no copyright is transferred, the transaction must be examined for levy under Business Support Service (including operational or administrative assistance) or Renting of Immovable Property, depending on whether the exhibitor merely provides premises or also furnishes support services; arrangements creating an unincorporated joint venture that constitutes a distinct person are likewise taxable under applicable service heads.