CST v. Zee Turner Ltd. - (Customs, Excise and Service Tax Appellate Tribunal) (01 Apr 2016)
Zee Turner saved from service tax liability
MANU/CE/0090/2016
Service Tax
The Customs Excise and Service Tax Appellate Tribunal saved Zee Turner from service tax levies after accepting submissions that it was merely acting as a representative or agent for foreign broadcasters; the broadcast and distribution of channels would necessarily encompass promotional activities like advertisements, sponsorship and selling.
The Tribunal reiterated that while charges recovered from broadcasting agencies from Multi Service Operators were specifically chargeable to tax after 16.06.205, the same was not recoverable prior to that date.
Zee Turner were appointed as exclusive distributors of television channels broadcast by foreign broadcasters in India. To achieve this goal, Zee undertook marketing and promotional activities, collected subscription revenue and remitted the contracted revenues to foreign broadcasters. The Department had claimed service tax on amounts earned by Zee between April 2003 and July 2005.
Relevant : Zee Tele Film Ltd. v. CCE, Mumbai MANU/CE/0059/2004
Tags : SERVICE TAX FOREIGN BROADCASTER INDIAN AGENT
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