Goods and Services Tax brought all the different tax slabs under one roof and calculators are staring to come up with different tools to include GST percentage for the benefit of businessmen.
GST also includes Entertainment tax and artists have to additional tax on their income as service tax. Producers and filmmakers are also recognised as artists widely.
Hence, they are asked to pay service tax on the money they earn along with the income tax and tax on profit is also applicable.
Government if strictly follows the rules, no producer can ever claim that their film crossed 100 crores share as it will be seen as the collective income of the movie. Any auditor or CA can explain you how to dodge them ot what all are applicable further!
But a senior person from Film Industry under anonymous condition, said that no producer pays tax for the collections they print on posters. In fact, they agree that it is a promotional tactic but not real whenever anyone questions them.
He also said that they show losses to even films that they claim to be blockbusters and last year, they paid tax minimal in comparison to the collections the biggest blockbusters were promoted to have collected.
He clearly stated that ticket rate increase in the first two weeks is just a drama by producers to maximise income and for that too they don't pay tax completely!
GST also includes Entertainment tax and artists have to additional tax on their income as service tax. Producers and filmmakers are also recognised as artists widely.
Hence, they are asked to pay service tax on the money they earn along with the income tax and tax on profit is also applicable.
Government if strictly follows the rules, no producer can ever claim that their film crossed 100 crores share as it will be seen as the collective income of the movie. Any auditor or CA can explain you how to dodge them ot what all are applicable further!
But a senior person from Film Industry under anonymous condition, said that no producer pays tax for the collections they print on posters. In fact, they agree that it is a promotional tactic but not real whenever anyone questions them.
He also said that they show losses to even films that they claim to be blockbusters and last year, they paid tax minimal in comparison to the collections the biggest blockbusters were promoted to have collected.
He clearly stated that ticket rate increase in the first two weeks is just a drama by producers to maximise income and for that too they don't pay tax completely!