I am directed to say that doubts have been raised as to whether the services rendered by a collection center is taxable in the category of photography service. The collection centre collects exposed film from photography studio who does not have processing facility/photographers, gets such rolls processed from a colour lab and hands over the prints to the photography studio/photographer.

2. The matter has been examined by the Board. The taxable services in case of photography service is any service provided to a customer, by photography studio or agency in relation to photography in any manner. However, the collection centers merely collect the exposed film from photography studio not having processing facility/ photographers and get it developed from a processing lab. For rendering this service they normally receive commission/handling charges from the processing labs and in some cases they may recover handling charges from the customers also. As they do not undertake any activity of taking the photographs or processing thereof, they do not fall in the category of photography studio/agency as defined in the Finance Act, 1994. They act merely as a courier/commission agent. Therefore, the services provided by the collection center is not taxable in the category of photography service.

3. Trade and field formations may be informed accordingly.

4. Receipt of this circular may please be acknowledged.

Sd/-
(P.R.Chandrasekharan)
Director (TRU)