Shahrukh seeks removal of VAT on entertainment industry
May, 28th 2008
Bollywood actor Shahrukh Khan on Tuesday demanded that Value Added Tax and service tax on the entertainment industry be abolished and industry status be conferred to it.
It has become necessary to bring in entertainment industry under the 'concurrent list' so that it can be governed under central rules and enjoy tax concessions announced by the government from time to time, Khan said in a statement here.
At present, the entire entertainment and film industry comes under state government' s jurisdiction as a result of which, it has not been able to enjoy the already conferred dejure industry status on it.
Shahrukh Khan would release a study on the entertainment industry on Tuesday evening highlighting the need for the removal of VAT and service tax.
The study - 'The Entertainment & Media Hub' is done by Associated Chambers of Commerce and Industry of India (Assocham).
Retaining the industry in the state government list deprives the tax concessions given by the Centre, Assocham said in its study.
According to the Assocham study, the media and entertainment sector would cross a turnover of Rs 1 lakh crore by 2011-12 from Rs 44,000 crore now.
The turnover of the television industry would grow by 22 per cent to Rs 51,900 crore by 2011-12 from Rs 19,100 crore, it said.