Service tax on cinema theatres

[MOHAMED YACOOB SHARIFF]

Dear Experts, pl clarify me the followoing 

One of my client is the theatre owner, he let his theatre for screning the feature films on profit sharing basis, to the distributors of the flims . Will service tax attract in this case, pl provide me the nagative list of services.

[YAGAY andSUN]

for clafication on screaning  of films etc. Kindly refer Circular No.148/17/2011-ST in this regard.  For Negative list of services, please check the Section 66D in this regard.

[YAGAY andSUN]

Sr. No.	Clause	Negative Service
01	66D(a)	Services by Government or a local authority
02	66D(b)	Services by the Reserve Bank of India
03	66D(c)	Services by a foreign diplomatic mission located in India
04	66D(d)	Services relating to agriculture
05	66D(e)	Trading of goods
06	66D(f)	Any process amounting to manufacture or production of goods
07	66D(g)	Selling of space or time slots for advertisements
08	66D(h)	Service by way of access to a road or a bridge on payment of toll charges
09	66D(i)	Betting, gambling or lottery
10	66D(j)	Admission to entertainment events or access to amusement facilities
11	66D(k)	Transmission or distribution of electricity
12	66D(l)	Services by way of education
13	66D(m)	Services by way of renting of residential dwelling for use as residence
14	66D(n)	Financial Sector
15	66D(o)	Service of transportation of passengers
16	66D(p)	Services by way of transportation of goods
17	66D(q)	Funeral, burial, crematorium or mortuary services

AI Summary

Service tax on cinema screenings may be excluded where services fall under the negative list, notably admission to entertainment events. Whether service tax applies to a cinema theatre leasing its premises for film screenings on a profit sharing basis depends on the statutory negative list and administrative guidance in Circular No.148/17/2011 ST. The negative list includes categorical exclusions, notably services described as admission to entertainment events or access to amusement facilities, which is the primary provision relied on to assess whether such theatre screening arrangements are outside the tax net.