Central Excise and Service Tax on TV production

By Vijay Kumar

TV serial producers have represented that they are subjected to Service Tax, under the category of "TV or Radio Programme production service' or Sale of spare or time for advertisement' from 2004. However, after budget 2007, in view of entry No. 23 in Notification No. 6/2006 [Recorded Video cassette intended for television broadcasting and supplied in formats such as Umatic, Betacam or any similar format - 8% duty] the Central Excise Department is also demanding Excise duty on same product.

Now the Board wants comments from the field on

1) Whether both the Service Tax and Excise duty are payable; on same activity or not?

2) Whether for both taxes, the same value is considered or different value is considered.

3) Practices of work adopted by this industry.

4) Whether the CENVAT Credit procedure would take care of problem of double levy?. Whether Excise duty or Service Tax paid by TV serial manufacturer are eligible for credit to the receiver?

5) Any other relevant fact, including practice followed.

Shouldn’t the Board clarify these issues instead of asking the field for clarifications?

CBEC Dy.No. 167/11/08-CX.4 Dated: March 05, 2008