16th March 2012,Friday
With the government slated to announce the implementation of the Goods and Services Tax (GST) in the Union Budget 2012, theentertainment industry is hoping for some relief from the high rates of taxation.
FICCI in its pre-budget memorandum has recommended that cinema exhibitors be exempted from levying service tax on Intellectual Property Rights to be transferred to exhibitors (Multiplex owners).
The chamber has also suggested that till the implementation of GST takes place, multiplex operators should be exempted from levy of service tax on property rentals, and entertainment tax is fully subsumed in GST, to result in seamless pass-through of such indirect taxes.
The chamber is of the opinion that government should not levy both VAT and Service tax on Copyright services to avoid multiple taxation on the same item.
The Economic Survey 2011-12, tabled in the Parliament on Thursday has stated that high rates of entertainment tax and lack of uniformity in levy structures across states are inhibiting growth of film industry in India but it could be addressed through adoption of GST.
"Adoption of the goods and services tax (GST), subsuming service tax and entertainment tax, could promote growth of the film industry," the survey has said.
Commenting on hurdles before the film industry that produces about over 1,000 films a year, it said, "High rates of entertainment tax and lack of uniformity in tax structure across states are major factors inhibiting growth of the film industry."
With the government slated to announce the implementation of the Goods and Services Tax (GST) in the Union Budget 2012, theentertainment industry is hoping for some relief from the high rates of taxation.
FICCI in its pre-budget memorandum has recommended that cinema exhibitors be exempted from levying service tax on Intellectual Property Rights to be transferred to exhibitors (Multiplex owners).
The chamber has also suggested that till the implementation of GST takes place, multiplex operators should be exempted from levy of service tax on property rentals, and entertainment tax is fully subsumed in GST, to result in seamless pass-through of such indirect taxes.
The chamber is of the opinion that government should not levy both VAT and Service tax on Copyright services to avoid multiple taxation on the same item.
The Economic Survey 2011-12, tabled in the Parliament on Thursday has stated that high rates of entertainment tax and lack of uniformity in levy structures across states are inhibiting growth of film industry in India but it could be addressed through adoption of GST.
"Adoption of the goods and services tax (GST), subsuming service tax and entertainment tax, could promote growth of the film industry," the survey has said.
Commenting on hurdles before the film industry that produces about over 1,000 films a year, it said, "High rates of entertainment tax and lack of uniformity in tax structure across states are major factors inhibiting growth of the film industry."
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