Annexure II

Photography service:

1. As per section 65(47), the term "photography" includes still photography, motion picture photography, laser photography, aerial photography and fluorescent photography. The taxable service, as per section 65(72)(zb), is any service provided, to a customer, by a photography studio or agency in relation to photography, in any manner. Photography studio or agency has been defined as "any professional photographer or a commercial concern engaged in the business of rendering service relating to photography" vide section 65(48).

2. The services which will come within the purview of service tax are still photography such as photographing persons or other subjects in studios or other locations, passport or identification photographs, fashion photos; industrial photographs of machine and buildings etc; photographic service for advertising display, brochures, news paper advertisement, catalogues; photography of any live event such as weddings, receptions, conventions, fashion shows, sports and news events (excluding news agency services, that is, press photographers are excluded); aerial photography such as photographs of landscape, structures and other surfaces from aircraft or helicopters with the help of cameras mounted on such aircraft or helicopter; laser photography to create holograms; motion picture photography, also known as cinematography to make films, which involves the general composition of a scene; the lighting of the set or location; the choice of cameras, lenses, filters, and film stock; the camera angle and movements; and the integration of any special effects; fluorescence photography using ultraviolet rays to irradiate a surface or substance to identify dyes, stains, and markings, specific chemical substances, and fluorescent components in microscope specimens; and any other kind of special photography service. Also covered are the photography services such as restoration of old photographs, processing and developing of photographic films and printing of photographs etc.

3. The photography services are rendered by still photography studios, still film processing laboratories, cinematographic studios/labs who undertake motion picture photography and processing of cine films, holography studios (laser photography) who make holograms, aerial photographers, industrial photographers, etc.

4. The value of taxable service is the gross amount charged from the customer for the service rendered. However, the cost of unexposed photography films sold to the customer is excluded. The service provider claiming benefit of the cost of film should be advised to show them clearly on the invoices along with description and particulars of the film. Otherwise, the claim will not be considered as admissible. No other cost (such as photographic paper, chemicals, etc.) is excluded from the taxable value.

5. In regard to still photography, notification No. 6/2001-ST dated the 9th July, 2001, has been issued. Accordingly, service providers who are registered under various States/Municipal laws relating to Shops and Establishments or any other law of state which is in force for the time being, for carrying out commercial activity only are liable to service tax. Individual professional photographers and others providing still photography service, but who do not have fixed place of business as a shop or office and who are not registered under these enactments, will not be liable to pay service tax. In essence, service tax is payable by shops and studios, processing and developing labs, etc. and not by the individual photographers.

6. Point for clarification:

A point has been raised as to whether the x-ray or the CT scan done using fluorescence photography technique will fall in the category of taxable service. It is clarified that these are not photography studios or agencies in common parlance; so the service provided by them does not come within the ambit of tax.