Ques. We have engaged the Service by Photographer & Videographer including Supply of edited copy in DVD and Printed Album. What is the rate of service tax onit
Answer This part comprises of two independent services. First is Photographer with printed album. And second is Videographer with DVD. The contract of photographer is a composite contract of supply of goods and services. Value of service portion shall be as per clause ( C) of Rule 2A(ii). ie. The service tax is payable on 60 per cent of the total amount charged. Current rate of service tax is 14%. Hence you have to pay service tax to the Photographer at the rate of 14% on 60 per cent of the gross amount paid by you inclusive all. This comes to 8.4% of the gross amount paid by you to the photographer.The service of the videographer is purely a service contract as the cost of the blank DVDs used is minuscule as compared to the total contract value. Hence service Tax is payable on the 100% value or the amount charged. Current rate of service tax is 14%. Hence you have to pay service tax at the rate of 14% to the videographer
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