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.