No Service Tax on Income from Screening of Movies for Annual Film Festival

Vinay Kumar Vs Principal Commissioner of Service Tax (CESTAT Delhi) The issue under consideration is whether service tax is applicable on income received from screening of movies for the annual film festival? CESTAT states that, the agreements entered into between the Appellant and the film Distributors clearly indicate that the film Distributors had granted theatrical exhibition rights to the Appellant and in return of transfer of such rights, the Appellant had agreed to pay certain amount to the Distributors, fixed generally as a percentage of Net Box Office Collection. The Principal Commiss...