VATupdate

Share this post on

No Service Tax on Revenue Sharing by Theatres: Supreme Court upholds CESTAT Decision

In a major relief to Inox Leisure Ltd., a two-judge bench of the Supreme Court has upheld the decision of the CESTAT wherein Hyderabad Bench quashed the Service Tax Demand under Business Support Services for revenue sharing by theatres. The appellant, Inox Leisure Ltd. is engaged in the business of exhibiting cinematographic films across India in theatres owned by the appellant or taken on rent. The appellant claims that it acquires the rights/license to exhibit the films at the designated theatres from various film distributors by entering into separate license agreements for each film. The consideration towards such license is paid by the appellant as per the agreed percentage of box office collection and such percentage varies from distributor to distributor, movie to movie, and week to week, after the release date.

Source Taxscan

 

Sponsors:

VAT news
VAT news

Advertisements: