Service tax on film producers

[Asked by Guest]

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

Copyright assignment treated as sale of goods outside service tax, licensing is taxable while exhibition transfers are exempt.
Outright assignment of copyright in a cinematographic work transfers ownership and is treated like a sale of goods outside service tax; licensing the copyright constitutes a taxable service. Temporary transfers or permission to use cinematographic works for exhibition in cinema halls are exempt under the exemption notification. The tax consequence therefore depends on whether rights (satellite, video, exhibition) were assigned or merely licensed, with assignment removing service tax liability and licensing attracting it.