VIDEOTAPE PRODUCTION SERVICE

Date of introduction: 16.07.2001 vide Notification No.4/2001-ST dt.09.07.2001

Definition:

“Video production agency” means any professional videographer or any commercial concern engaged in the business of rendering services relating to video-tape production;

(Section 65(82) of Finance Act, 1994 as amended)

“Video-tape production” means the process of any recording of any programme, event or function on a magnetic tape and includes editing thereof, in any manner;

(Section 65(83) of Finance Act, 1994 as amended)

Taxable event & Scope of service:

Taxable service means any service provided to a client, by a video production agency in relation to videotape production, in any manner.

(Section 65(72) (zi) of Finance Act, 1994 as amended)

The taxable service covers the service of recording of any programme, event or function and includes recording of serials, telefilms or any other programme meant for broadcasting. Also, the scope of taxable service covers any service in relation to videotape production in any manner. Thus facilitation activities, such as providing studio, other facility as lights, gadgets, instruments, devices, providing technical persons for operating the recording devices or for any other activity in relation to video tape production are taxable. Similarly, editing, colouring, dubbing, printing titles and special effects, film processing etc by a video production agency will all come within the scope of this service.

(Ministry’s F.No.B11/1/2001-TRU dt. 09.07.2001)

Value of Taxable Service:

Value of the taxable service shall be the gross amount charged by the service provider or such service rendered by him but dose not include the cost of unrecorded magnetic tape or such other storage devices, if any, sold to the client during the course of providing the service. (Section 67 of Finance Act, 1994 as amended) Exemption and Exclusion:

1                    The taxable service provided to a client by an individual professional videographer in relation to videotape production is exempted from the whole of the Service Tax, vide Notification No. 7/2001-ST dt.09.07.2001. As such the tax is payable by studios, shops and other establishment carrying on business of rendering service in the field of videography.

2                    Reproduction of original master to make further copies of a videotape will not come within the purview of Service Tax. (Ministry’s F.No.B11/1/2001-TRU dt. 09.07.2001)

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