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August 2010

Media companies oppose service tax on copyright services

By Raman Jokhakar
Tarunkumar G. Singhal
Chartered Accountants
Reading Time 1 mins

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52 Media companies oppose service tax on copyright services

PVR Pictures, Balaji Telefilms, Yash Raj Films and UTV Motion
Pictures have moved the Delhi High Court against the Government’s recent
decision to levy service tax on copyright services.

The Finance Ministry introduced the tax for the first time on
July 1, 2010. PVR Pictures, in its petition, alleged that copyrights are treated
as goods and the transfer of copyrights are treated as sale of goods, which
falls within the domain of taxation by States under Article 246, and not the
Union.

The company said treating copyright as goods as well as a
service is ultra vires (beyond the powers of) the Constitution of India and
contravenes Articles 14, 19(1)(g), 265 and 300A of the Constitution.

(Source : Business Standard, dated 8-7-2010)


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