service tax on revenue sharing

In my view the essensce of the transaction would go to prove what it is. Once the essence is of taxable service then the measure ( fixed, flexible, revenue share, based on cost + etc would be how the monetary compensation is to be arrived at.

However where there is a JV or a SPV where the parties join and agree on certain terms to share the profits and losses then the ST would not be applicable. 

I have a typical query.  A multiplex is housing various restaurants on the revenue sharing agreement.  Which means a fixed percentage of revenue is given to the multiplex owner.   There is no rent payable by the tenant.  Department claims that the revenue sharing is nothing but rent and other amenities provided by the owner and demands service tax on the entire income earned by way of revenue sharing agreement.  Is that correct.

Yes- prima facie it appears that ST is payable.