Royality amount -Music Director

[Thevarkonda Suresh]

Whether royality amount received by music director in india under Servicetax period is taxable

[KASTURI SETHI]

Board's Service Tax Education Guide (Released on 1.7.12)

Guidance Note 7 - Exemptions

7.10.2 I am a composer of a song having the copyright for my song. When I allow the recording of the song on payment of some royalty by a music company for further distribution, am I required to pay service tax on the royalty amount received from a music company?

No, as the copyright relating to original work of composing song falls under clause (a) of sub-section (1) of section 13 of the Indian Copyright Act, 1957 which is exempt from service tax. Similarly an author having copy right of a book written by him would not be required to pay service tax on royalty amount received from the publisher for publishing the book. A person having the copyright of a cinematographic film would also not be required to pay service tax on the amount received from the film exhibitors for exhibiting the cinematographic film in cinema theatres.

AI Summary

Music directors' royalties from original compositions are exempt from service tax under Indian Copyright Act, 1957. A query was raised regarding the taxability of royalty amounts received by a music director in India during the service tax period. The response referenced the Service Tax Education Guide, noting that royalties from original compositions are exempt from service tax under the Indian Copyright Act, 1957. This exemption applies to composers, authors, and filmmakers regarding royalties received for their copyrighted works, such as songs, books, or films. Thus, music directors receiving royalties for their compositions are not required to pay service tax on those amounts.