SRK seeks removal of VAT on entertainment industry
May, 28th 2008
Shah Rukh Khan on Tuesday asked the Centre to remove Value Added Tax (VAT) and service tax on the entertainment industry and sought the conferment of de-facto industry status on it so that it can earn certain tax incentives.
It has become necessary to bring in entertainment industry under the "concurrent list" so that it can be governed by Central rules and enjoy tax concessions announced by the latter from time to time, Khan said in a statement.
At present, the entire entertainment and film industry comes under state governments jurisdiction as a result of which, it has not been able to enjoy the already conferred dejure industry status on it.
Shah Rukh Khan would release a study on the entertainment industry this evening highlighting the need for the removal of VAT and service tax.
The study 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.
Assocham has asked for the enactment of Optic Disc Law to combat piracy, as such a law has been introduced in Malaysia, Hong Kong and the results have been encouraging, it said.
The government has set up five groups on piracy, taxation and custom duties, exports of films, promotion, development and marketing for films.
As per the Finance Act of 2007, the Central Excise department has issued notices for recovery of service tax from the industry in cases of renting, leasing, letting immovable properties, Assocham pointed out.
As the film industry is burdened with various types of taxes and fee imposed by state governments, the Centre should exempt transactions between producers and distributors, Assocham said.