Article
SC Upholds That Marketing Of Assigned Music Rights For Own Commercial Benefit Is Not A Taxable Service And Ancillary Marketing Obligations Are Not Separately Taxable
The Supreme Court has clarified the service tax treatment of marketing and promotion expenditure
incurred by a broadcaster on commercially exploiting acquired music and song video rights. The Court
upheld the CESTAT’s view that such expenditure does not represent consideration for any taxable
service to the film producers, since the broadcaster promoted the rights for its own benefit as assignee
and therefore no taxable service relationship existed.
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