27 October 2011
This is to inform you that the company purchased movie rights in the financial year 2002-03 of Rs. 2 Crores. Now the company wants to sale the said rights at Rs.15 Lacs. We would like to know whether company has to charge VAT . If yes, at what rate under which scheule. Please give clarification with entry No falls under VAT Schedule.
28 October 2011
Mr. YV Shah, Cinematographic films are not listed in any schedules of VAT.So u/s4(1)(b) of KVAT Act they chargeable @14%.Even the printed films also fall under the same category. This is when you are actually selling the printed copies of a particular feature film. I am of the opinion that you are transferring few copies of the film also along with the rights. MJK
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