Copyright exemption for temporary transfer: exemption limited to original works and cinema exhibition, affecting input tax credit. Temporary transfer or permitting use of copyright is exempt from service tax for original literary, dramatic, musical or artistic works; from 1 April 2013 the exemption for cinematograph films is confined to exhibition in cinema halls or theatres, enabling service providers to pass input tax credits. Guidance specifies that sound recording copyrights are taxable while royalties for original works are exempt, and contractual screening arrangements should be referred to Board circulars concerning cinematograph films.