𝗖𝗘𝗦𝗧𝗔𝗧 𝗠𝘂𝗺𝗯𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗧𝗮𝘅𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗼𝗳 𝗠𝗼𝘃𝗶𝗲 𝗦𝗰𝗿𝗲𝗲𝗻𝗶𝗻𝗴 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: Movie screening is non-taxable unless theater is leased for fixed rent; principal-to-principal transactions taxed per Finance Act classification.

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s Cinepolis India Pvt. Ltd. 𝗜𝘀𝘀𝘂𝗲: Tax liability for exhibiting cinematographic films under revenue-sharing agreements with distributors during 2014–2016. 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: Revenue shared between the appellant and distributors on a principal-to-principal basis. The Revenue argued they are distinct entities operating de-mutualized.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: Screening of movies is not taxable unless the distributor leases the theater and earns fixed rent. In principal-to-principal arrangements, tax liability depends on transaction nature per CBEC Circulars and Section 65A of the Finance Act, 1994. No service tax applies under Business Support Services (BSS) for such transactions.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s Cinepolis India Pvt. Ltd. vs. Commissioner of Service Tax 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 22 December 2022 📜 This ruling exempts revenue-sharing movie screenings from service tax while ensuring clarity in transactions between distributors and exhibitors.