Service tax on film producers

[kamal mall]

Dear Sir,

Our Client is a Film producer. It done two type of transactions 1. sold his movier under work in progress to another producer and take 50 lacs lump sum from him. Whether it is taxable transaction? 2. It done a movie and sold their satalight right, Video right and exhibition right to various parties. Whether it is taxable transaction? Pls mention section for reference.

AI Summary

Film Producer's Transaction Tax Implications: Copyright Transfer vs. Service Tax Exemption for Temporary Cinema Exhibition Transfers A film producer queried about the tax implications of two transactions: selling a movie under work in progress and selling satellite, video, and exhibition rights. The response clarified that these involve transferring intellectual property, specifically copyright, rather than physical goods. Copyright can be transferred through assignment or licensing. An assignment, akin to a sale of goods, falls outside the scope of service tax. Licensing is considered a service, but temporary transfers for cinema exhibition are exempt under specific provisions. The explanation emphasized understanding copyright as a bundle of rights and its tax implications.