The collection centre collects exposed film from photography studio

Indian Service Tax

Clarifications

Collection Center

Cir. No. 37/5/2001-ST, Date: 27/12/2001

Sub:- Service Tax Collection Center collecting exposed film from photography studio - Service provided not taxable.

I am directed to say that doubts have been raised as to whether the services rendered by a collection center is taxable in the category of photography service. The collection centre collects exposed film from photography studio who does not have processing facility/photographers, gets such rolls processed from a colour lab and hands over the prints to the photography studio/photographer.

2. The matter has been examined by the Board. The taxable service in case of photography service is any service provided to a customer, by photography studio or agency in relation to photography in any manner. However, the collection centers merely collect the exposed film from photography studio not having processing facility/photographers and get it developed from a processing lab. For rendering this service they normally receive commissionlhandling charges from the processing labs and in some cases they may recover handling charges from the customers also. As they do not undertake any activity of taking the photographs or processing thereof, they do not fall in the category of photography studio/agency as defined in the Finance Act, 1994. They act merely as a courier/ commission agent. Therefore, the services provided by the collection center is not taxable in the category of photography service.

Notification

Exemption to still photography

[Notification No. 6/2001-ST, dated 09/07/2001]

In exercise of the powers conferred by Section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided to a customer in relation to still photography by a photography studio or agency, which is not registered under the law relating to Shops and Establishment or any other law of a State for the time being in force, from the whole of the service tax leviable thereon under Section 66 of the said Finance Act.

2. This notification shall come into force on the 16th day of July, 2001.