Service Tax might Stop Bollywood
2013 is 100th year of Indian Cinema, instead of celebrating it with joy and vigor, producers & actors guild of cinema and television are planning to go to strike against the extra 12.36 percent service tax imposed upon film and television actors. According to producer Ramesh Taurani, man behind films like Ajab Prem Ki Ghazab Kahani and forthcoming thriller Race 2, producers are meeting Wednesday to discuss the issue.
“Tomorrow (Wednesday) all the producers will have a meeting where we will have to find a solution to the problem. It’s an additional burden on us and we can’t handle this anymore,” he said.
The service tax is effective from this month and film and television actors will be charged 12.36 percent service tax on their earnings from film, TV shows and endorsements. The indirect tax will be in addition to their income tax and the producers believe that they will have to bear the brunt of it.