Movies

Film industry up in arms against Service Tax on Copyright

NEW DELHI: A core committee comprising senior members of the film industry, along with Members of Parliament, will meet Finance Minister Pranab Mukherjee to voice their protest against the levy of service tax on copyright.


The Film Federation of India FFI) , which will give detailed statistics stating the losses of the film industry and the meagre success rate, said that levy of service tax will sound the death knell of the Indian film industry and “we will be forced to shut down the entire Indian film industry”.


In a resolution passed at a joint meeting of the Film Associations including Multiplex Associations of India at the South Indian Film Chamber of Commerce in Chennai convened by the FFI, it was stated that “this additional service tax will be a big burden and cannot be levied on the temporary transfer of copyrights.”


The Indian film industry is highly volatile and statistics of the past 10 years show that only 7-8 per cent of the films all over India are successful and, thus, yield only the capital invested by the producer/rights holder along with a meagre profit. The rest of the films are big flops due to various reasons. The success rate in the film has been declining year after year.


The ‘Government seems to be aware’ of only Hindi hits like ‘Bodyguard’ and are carried away by the collections of the film and feel the sector is making huge profits, FFI said. The films which fail to collect or which flop at the box office are not brought to the notice of the Government. Thus, the Service Tax has been imposed ‘with the idea of collecting more taxes from an ailing industry.’


FFI pointed out that usually service tax levied is collectable from the end user of the services. Unfortunately the producers, distributors and exhibitors cannot pass on the service tax to the end user – the audience and the consumer - since most state governments have put a cap on the rates of admission in theatres.


“In that case, the service tax has been absorbed only by the over burdened film industry, which is totally unacceptable. We would also like to bring to the attention of the governments that the film industry is already burdened with heavy taxation of entertainment tax by the State Government apart from VAT being levied by several states. This being the case, the film industry is probably the highest taxed industry in the whole of India without getting any subsidy or financial help either from the central government or state governments," FFI averred.


Also present was K Vaitheeswaran, Advocate and Tax Consultant. FFI vice president Ravi Kottarakara was the convener of the meeting.


The meeting was attended by office Bearers and senior members from the FFI, South Indian Film Chamber of commerce, Tamil Film Producers’ Council, Tamil Nadu Film Distributors’ Federation, Tamil Nadu Film Exhibitors Association, Kerala Film Chamber of Commerce, Kerala Film Producers Association, Film Distributors Association of Kerala, Kerala Film Exhibitors Association, Andhra Pradesh Film Chamber of Commerce, Telangana Film Chamber of Commerce, Telugu Film Producers’ Council, Chennai, Karnataka Film Chamber of Commerce, Kannada Film Producers’ Association, Cinema Owners and Exhibitors Association of India, Eastern India Motion Pictures Association, Kolkata, and Central Circuit Cine Association.


FFI also has in its fold other important associations like the Indian Motion Picture Producers Association, the Akhil Bharatiya Marathi Chitrapat Mahamandal, the North India Film Association, Multiplex Owners Association of India, Delhi Film Distributors Council, Motion Picture Association, Bihar and Jharkhand Motion Picture Association, Indian Film Exporters Association, Motion Picture Association of America Inc, Kinematograph Renter’s Society Pvt. Ltd., Indian Documentary Producers Association, Chennai City Film Exhibitors Association, Film Makers Combine, Film & Television Producers Guild of South India, Graftii, South Indian Film Exporters Association, Telugu Film Producers Council, Hyderabad, Telugu Film Producers Association, Chennai, Tamil Nadu Film Distributors Council, Tamil Film Chamber of Commerce, The Indian Motion Picture Distributors Association, Western India Film Producers Association and Chamber of Movie & TV Programme Producers, Delhi.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/08/zee-studio.jpg?itok=1xtV1Jhc
Zee Studio to premiere the post-apocalyptic horror drama - MAGGIE!

Zee Studio, the hollywood movie destination, brings the Indian television premiere of Maggie. Starring multi-award winner Arnold Schwarzenegger and Academy Award-nominee, Abigail Breslin, this post-apocalyptic drama premieres on 10 December 2017, Sunday at 12 noon and 9 pm.

Movies Hollywood
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/01/sanjay.jpg?itok=sJJUMOP8
Demonetisation, decline in govt ads impact UFO Q2 numbers

BENGALURU: Indian digital cinema distribution network and in-cinema advertising platform UFO Moviez Ltd (UFO) reported a 12.8 percent year-on-year (y-o-y) decline in consolidated operating revenue for the quarter ended 30 September 2017 (Q2 FY 2017-18) as compared with the corresponding year ago...

Movies Movies On Mutiple Platforms
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/25/Madhavan_0.jpg?itok=AcPIL5R4
The modern day economics of film financing

Only 2 per cent of the total movies released in 2016 in the US were computer graphic (CG) animation, yet they grossed more than 21 per cent of the US box office collection. Strong animation brands have longer shelf-life and generate revenue for years.

Movies International
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/24/Posto.jpg?itok=TKLdU5Bl
Bengali film Posto to premiere on Hoichoi before satellite TV

NEW DELHI: Digital Bengali entertainment content platform Hoichoi has acquired exclusive digital rights of this year’s most successful Bengali feature film Posto, ensuring it a world digital premiere today before a satellite TV premiere. This will provide Bengali moviemakers a robust additional...

Movies Regional
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/16/pvr_0.jpg?itok=UZKfyV-h
PVR acquires minority stake in US luxury theatre chain

PVR Ltd (PVR) will acquire a minority stake in US-based luxury restaurant and theatre iPic-Gold Class Entertainment (iPic).

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/15/sunil-lulla_1.jpg?itok=sqgylncT
Eros reports higher profit margin despite fewer releases

BENGALURU: Sunil Lulla-led Eros International Media Limited (Eros) reported 21 per cent margin (on operating income) for consolidated profit after tax (PAT) for the quarter ended 30 September 2017 (Q2 FY 2017-18) as compared with 12.8 per cent margin for the corresponding quarter a last ago. The...

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/31/inox1.jpg?itok=CpHFAdho
Inox reports increase in revenue, profits for second quarter

BENGALURU: Indian cinema chain Inox Leisure Limited (Inox) has reported improved revenue and net profit after tax (PAT) for the quarter ended 30 September 2017 (Q2-18, current quarter) as compared to the corresponding quarter of the previous year (Q2-17, year ago quarter). Inox revenue from...

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/31/Grand-Challenge.jpg?itok=Eg01vsKl
1700 films received on ending violence against women film contest

NEW DELHI: Around 1700 entries from over 600 colleges have come in response to a campaign launchged earlier this year for two-minute films on generating debate and promote positive change in cultural and social norms around the value of women in India. The campaign ‘#BasAbBahutHogaya – Enough is...

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/28/TP_Aggarwal.jpg?itok=WSDOM3Rj
Reduce GST on film industry, IMPPA pleads to FM Jaitley

NEW DELHI: The Indian Motion Pictures Producers Association (IMPPA) has urged the government to fix 5 per cent as the maximum GST rate that should be charged on all goods and services connected with the entertainment industry including entertainment tax.

Movies Hindi

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories