service tax applicability

[suman suman]

IF MR.A GIVEN RUPEES 10 CRORE TO MR .B FOR MAKING A FILM IN THAT 10 CRORE 5 CRORE IS FOR MAKING THAT FILM REMAINING 5 CRORE IS FOR MR.B REMUNERATION FOR JOB DONE. WHAT IS THE TAX IMPLICATION IN THE HANDS OF MR.B???? IS SERVICE TAX APPLICABLE TO HIM??? IF APPLICABLE ON HOW MUCH AMOUNT HE HAS TO PAY?? WHAT IS THE PERCENTAGE TO PAY???

[YAGAY andSUN]

B will raise a bill/invoice of ₹ 10 crore on A to charge service tax on entire amount.

[Ganeshan Kalyani]

Service tax is applicable on consideration received for service rendered. Here, ₹ 10 crores is received toward consideration for the service, by way of making film, is rendered, hence service tax is applicable. Thanks.

[KASTURI SETHI]

I support the views of both experts. As per Section 67, ST is leviable on gross amount charged. Pl. read Section 67 (i), & (3) of the Act and also definition of ''Consideration" below Explanation (a) of Section 67 of the Finance Act.

[Ganeshan Kalyani]

Thanks sir.

AI Summary

Service Tax Applies to Entire 10 Crore Payment for Film Production, Including Remuneration, Under Section 67 of Finance Act. A discussion on a forum addressed the service tax implications for an individual, Mr. B, who received 10 crore from Mr. A for making a film, with 5 crore allocated for production and 5 crore as remuneration. The consensus among respondents was that service tax is applicable on the entire 10 crore, as it constitutes consideration for services rendered. They referenced Section 67 of the Finance Act, which states that service tax is levied on the gross amount charged. The discussion emphasized that the full amount is subject to service tax, aligning with the legal definitions and provisions.