10 December 2008
I need a guidance in respect of accounting and taxation of film producers. Is there any guidance note issued or any other reference material available in the market in this regard. Is there any Sales Tax & Service Tax applicable to producers. I would really appreciate your co-operation.
17 October 2013
Service Tax is not applicable for film indusrty.
Check below news:
The Budget 2012 may not have brought smiles on too many faces, but those in the film industry are happy. Films have been exempted from service tax.
Vipul Shah, the producer of hit films such as Singh is Kinng and Namastey London, considers this "one of the most positive and sensible steps by the Government of India".
"It will certainly boost the business of films... In India, there are just a handful of films which make good theatrical business. And beyond that, if the producer has to pay service tax, it just kills the producer. This (the exemption) will reduce the losses films make and result in overall growth," he says.
Actor-producer Sanjay Suri is relieved too. "There are anyway so much costs involved in making a film and distributing it... any kind of exemption will help."
The film industry was planning a nationwide shutdown to protest against the Central government's decision to levy service tax.
Called by the Film Federation of India (FFI), the strike had been put off till the Budget Session after officials from the industry met Mukherjee.
The heads of production houses aren't breathing easy yet, though. Vikram Malhotra, COO of Viacom18 that is producing some of the biggest movies this year, says: "This is just the beginning. This is clearly not the only thing that will regulate the Indian film industry." Sid Jain, owner of IRock Entertainment, says: "I need to read the details carefully to see if it really reduces our net cost of production."
CAclubindia
