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Circulars/Trade
Notices/Clarification
CIRCULAR NO. 78/8/2004 ST, Dated : March 23, 2004 Representation have been received in the Board with regard to levy of service tax on the activities undertaken by the television serial producers, who either (i)
sell TV serial episodes to the TV channels 2. It appears that in some jurisdiction service tax is being demanded on the services listed at (‘i’) under the category of Videotape Production Services, and in respect of services listed at (‘ii’) under the category of Advertisement Agency Services. 3. The issue has been examined. The taxable service i.e. “videotape production service” is on the process of recording of any programme, event or function on magnetic tapes (including editing thereof). The tax is therefore limited to the technical function of recording or editing what is recorded and not on the entire gamut of production of serials. In case the producer hires a video-grapher or an editor, the payment made for services would be taxable at the hands of such service providers. However, no tax is leviable on the producers for selling the serial to channel. 4. Similarly, in case of FCT, selling the time allotted to a producer does not fall within the purview of “advertisement service” since this activity is not connected to making, preparation, display or exhibition of advertisement. This is akin to providing space in a newspaper or magazine for publishing an advertisement and has nothing to do with actual presentation of the advertisement. 5. The field formations may suitably be informed. 6. Trade Notice may be issued for information of the trade.
F.No.241/01/2004-CX-4 |