SERVICES OF PERMITTING COMMERCIAL USE OR EXPLOITATION OF ANY EVENT ORGANIZED BY A PERSON OR AN ORGANIZATION.
Any individual or organization who offers to share/part their rights such as right to privacy, easement right, right to secrecy for a consideration like Company Sponsored Film Fare Awards, Celebrities Marriages, and Music Concert, Promotion Event etc would fall under service tax.
In these cases companies, broadcasting agencies, video producers are given the right to capture these programmers or event for future commercial exploitation gives rise to another taxable service such as programme production service or broadcasting service.
The Finance Bill 2010 has proposed to tax the amount received by the organization or person who permits the recording and broadcasting of the event from the broadcaster or any other person.
Services related to two types of copyrights have not been covered under existing taxable service ‘intellectual property right (IPR)’
Namely that on (1) cinematographic films (2) sound recording.
Intellectual property rights namely trademarks, patents and designs were earlier taxed.
However copyright which is one of the IPRs has been excluded from service tax with intention to encourage artists and authors as it involves creative works such as literary work, musical work and artistic work.
a.cinematographic films b.sound recordings c.Original literacy, dramatic, musical and artistic works.
The first and second categories are made taxable under these services.
Cinematographic films means any work of visual recording on any medium which have been produced the same may be accompanied with sound reproduction also.
The recording of the cinematographic film and sound track are the property of the producer who will transfer temporarily or permit its use by another person for a price which is been taxed under service tax.