SERVICE TAX ON MOVIE THEATRES

It is clarified that screening of a movie is not a taxable service except where the distributor leases out the theater and the theater owner gets a fixed rent. In such a case, the service provided by the theater owner would be categorized as 'Renting of immovable property for furtherance of business or commerce' and the theater owner would be liable to pay tax on the rent received from the distributor. The facts of each case and the terms of contract must be examined before a view is taken.