Indian Service Tax
Photography Service
Effective Date: 16/07/2001.
Authority: Notification No. 4/2001-ST, dt. 9/7/2001 (for full text of Notification see under Broadcasting).
Rate of Service Tax: 8% from 14/5/2003 (5% upto 13/5/2003). 10% from 10/9/2004 - Cess 2% of 10% = 0.2. Total ST = 10.2%.
Definitions: "photography"includes stilI photography, motion picture photography, laser photography, . aerial photography or fluorescent photography; [Section 65(78)]
''Photography Studio or Agency"means any professional photographer or a commercial concern engaged in the business of rendering service relating to photography; [Section 65(79)]
Taxable service: Photography service provided by a photography studio or agency in any manner to a customer.
Value of taxable service: Gross amount charged from the customer, but cost of unexposed photographic film or unrecorded magnetic tape or such other storage devices, if any, sold to the client during the course of providing the service, shall not be included in the value of this taxable service.
Exemptions
-
Costs of unexposed photographic film, unrecorded magnetic tape, such other storage devices - 2003 (156) ELT 17 (Ker.), ENo. B.II/I/2000TRU, dt. 9/7/2001 Annexure II.
-
Costs of material and goods - Para 2.9.1. of Cir. No. 59/8/2003-ST, dt. 20/6/2003.
-
Cost of film supplied by the customs and shown clearly.
-
Individual professional photographers
-
X-ray or CT scan - ENo. B.II/I/2000-TRU, dt. 9/7/2001 Annexure II
-
Collection center - Cir. No. 37/5/2001-ST, dt. 27/12/2001
-
Still photography not registered under State Government law - Notfn. No. 6/2001-ST, dt. 9/7/2001
Person liable to pay: Photo studio or Agency.
Exemption - (Para 2.9.1 of Cir.No. 59/8/2003-ST, dt. 20/6/2003): In case of authorized service stations, maintenance or repair services, commissioning and installation services and photography services it has been provided in the law that the cost of goods and material shall not form part of the value to be subjected to service tax, if evidence (like sale invoice/bill) shows that these goods were sold. Such dispensation has, however, not been provided for other services like commercial coaching and training centers, telecom services. In this regard, a general exemption under Notification No. 12/2003-service Tax, dated 20th June, 2003 has been issued exempting that part of the value of all taxable services from service tax, which represents the cost of goods or material sold by the service provider to the receiver of such services during the course of provision of the taxable services. This exemption would be available only in cases where the sale of such goods is evidenced and the sale value is quantified and shown separately in the invoice. It is also clarified that in case of commercial training and coaching institutes, the exclusion shall apply only to the sale value of standard textbooks, which are priced. Any study material or written text provided by such institute as a part of service which does not satisfY the above criteria will be subjected to service tax.
Head of Account
|
Main text of Departmental Circular/TN
[Ministry's F.No. B.II/I/2000-TRU dated 9/7/2001 - Annexure II]
1. As per Section 65(47), the term "photography" includes still photography, motion picture photography, laser photography, aerial photography and fluorescent photography. The taxable service, as per Section 65(72)(zb), is any service provided, to a customer, by a photography studio or agency in relation to photography, in any manner. Photography studio or agency has been defined as "any professional photographer or a commercial concern engaged in the business of rendering service relating to photography" vide Section 65(48).
2. The services which will come within the purview of service tax are still photography such as photographing persons or other subjects in studios or other-locations, passport or identification photographs, fashion photos; industrial photographs of machine and buildings etc; photographic service for advertising display, brochures, news paper advertisement, catalogues; photography of any live event such as weddings, receptions, conventions, fashion shows, sports and news events (excluding news agency services, that is, press photographers are excluded); aerial photography such as photographs of landscape, structures and other surfaces from aircraft or helicopters with the help of cameras mounted on such aircraft or helicopter; laser photography to create holograms; motion picture
photography, also known as cinematography to make films, which involves the general composition of a scene; the lighting of the set or location; the choice of cameras, lenses, filters, and film stock; the camera angle and movements; and the integration of any special effects; fluorescence photography usingultra violetrays to irradiate a surface or substance to identify dyes, stains, and markings, specific chemical substances, and fluorescent components in microscope specimens; and any other kind of special photography service. Also covered are the photography services such as restoration of old photographs, processing and developing of photographic films and printing of photographs etc.
3. The photography services are rendered by still photography studios, still film processing laboratories, cinematographic studios/labs who undertake motion picture photography and processing of cine films, holography studios (laser photography) who make holograms, aerial photographers, industrial photographers, etc.
4. The value of taxable service is the gross amount charged from the customer for the service rendered. However, the cost of unexposed photography films sold to the customer is excluded. The service provider claiming benefit of the cost of film should be advised to show them clearly on the invoices along with description and particulars of the film. Otherwise, the claim will not be considered as admissible. No other cost (such as photographic paper, chemicals, etc.) is excluded from the taxable value.
5. In regard to still photography, notification No. 6/2001-ST dated the 9th July, 2001, has been issued. Accordingly, service providers who are registered under various States/Municipal laws relating to Shops and Establishments or any other law of State which is in force for the time being, for carrying out commercial activity only are liable to service tax. Individual professional photographers and others providing still photography service, but who do not have fixed place of business as a shop or office and who are not registered under these enactments, will not be liable to pay service tax. In essence, service lax is payable by shops and studios, processing and developing labs, etc., and not by the individual photographers.
6. Point for clarification
A point has been raised as to whether the x-ray or the CT scan done using fluorescence photography technique will fall in the category of taxable service. It is clarified that these are not photography studios or agencies in common parlance; so the service provided by them does not come within the ambit of tax.
No comments:
Post a Comment