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February 2023

Theatre owner is not liable to deduct tax at source on convenience fee charged by BookMyShow to the end customer and retained by it.

By Jagdish Punjabi, Chartered Accountant
Devendra Jain, Advocate
Reading Time 5 mins

54 Srinivas Rudrappa. vs. ITO

TS-1026-ITAT-2022 (Bang.-Trib.)

A.Y.: 2013-14 & 2014-15

Date of Order: 2nd December, 2022

Section: 194H, 201, 201(1A)

Theatre owner is not liable to deduct tax at source on convenience fee charged by BookMyShow to the end customer and retained by it.

FACTS

The assessee, a proprietor of a theatre, was engaged in the business of exhibition of films. A survey under section 133A was conducted in the business premises of M/s Bigtree engaged in providing services through their online platform BookMyShow, facilitating booking of cinema tickets by providing an online ticketing platform for customers and sale of cinema tickets, food and beverages coupons, and events through its website www.bookmyshow.com.

In the case of cinema owners, when the end customers booked cinema tickets through the BookMyShow portal and made the payment to Bigtree, the payment was raised towards ticket cost along with convenience fees that were charged over and above the ticket charges. The ticket cost was remitted by Bigtree to the cine

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