Television

SERVICE TAX

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2015/10/14/Untitled-1_33.jpg?itok=im08ntRQ

he multiple levels and multi-point Service Tax imposed on the Entertainment Industry is making survival difficult for the small content producers.

 

Presently, the Entertainment Industry is paying Service Tax at many different levels and points, such that they end up paying Service Tax on Service Tax on Service tax. The levy is draconian and is making survival difficult for the content producers, who being the weakest link, bear the whole of the burden. The scenario is briefly described as under: -

 

The subscribers of Cable TV pay Service-tax which is collected and deposited by the Cable Operator.



The advertisers pay service tax to the ad-agencies on all ads booked by them.



The ad-agencies pay service tax on all advertisements aired, which the TV Channels collect and deposit.



The TV Channels are supposed to pay Service Tax to the Content Producers which the Content Producers are supposed to collect and deposit. As of now, none of the Channels, including Doordarshan, is paying this tax and so the Content Producers, even though they do not collect, deposit from their own resources as per law.



The Content producers hire equipment and buy utility services such as Telephone, Electricity, Insurance etc., on which they pay service tax which the equipment owners and utilities companies collect and deposit.

 

(A graphical representation is attached

 

Thus, the multi-point and multi-level Service tax levied on the Entertainment Industry is becoming such a burden that Channels, because they are at a bargaining end, refuse to bear and pay (and there is no law empowering the producers to recover the same from the channels) so it is borne by the Producers, and the producers have to pay to the Utilities and Equipment Suppliers as they are not in a position to refuse. Producers, end up paying service tax on their purchases as well as sales.

 

Doordarshan refuses to pay Service Tax on content that it purchases, although the law says they should pay; but collects Service tax from advertisers on telecast fees charges by it per force. Double faced policy.

 

The channels refuse to bear, not because they want to cheat, but because they too are forced to bear the Service Tax that the advertising agencies are refusing to pay. The ad-agencies are refusing to pay because they are already paying the tax on one side of their transaction.

 

The unfairness of the law lies in the fact that most of the players in the Entertainment Industry have to pay Service Tax on their costs as well as their revenues. This is against the concept of fair taxation.

 

We request that this chain of multi-point taxation be broken by exempting the Producers from Service Tax. The ad-agencies are already collecting and paying the Service Tax on all ads aired on the Channels, and the Cable Operators are also doing the same. Further, the Channels are paying Service Tax on all ads aired by them once again. The last leg of the chain, the Equipment Suppliers and Utilities are also collecting and paying service tax. Exempting the producers will give a great life-line to the Industry by breaking the Chain.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/21/lal.jpg?itok=gi-ZabHS
&TV presents Laal Ishq - passionate love stories with a supernatural twist

We promised to be together forever. Nothing could take us apart - not even death. Even though my body has long gone, my spirit still lives on… my soul will always be with you. For true love, never dies. &TV’s latest offering Laal Ishq, a series of passionate love stories with a supernatural...

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/21/kumkum.jpg?itok=MYwxtkw_
Zee Anmol retains lead in GEC (U+R) in BARC's week 24 data

Zee Anmol retained its top spot in Broadcast Audience Research Council (BARC) data for week 24 in the Hindi GEC (U+R) market. While Star Utsav and Rishtey swapped their third and fourth positions in the rural market, Star Plus and Zee TV exchanged second and third positions in the urban segment.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/21/mirror.jpg?itok=iCGUizmu
BARC, Week 24: Rebublic TV dominates, Mirror Now enters top five

MUMBAI: Times Network’s English news channel, Mirror Now, replaced NDTV in the All India Broadcast Audience Research Council’s (BARC) week 24 rantings, as Arnab Goswami's Republic TV continued to dominate the English news market While Aaj Tak led the charts in two Hindi news markets, ABP News...

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/21/com.jpg?itok=dt4jzm8M
What next with Fox-Disney-Comcast ?

MUMBAI: Part poker, part chess. That's exactly how the Disney-Comcast bidding war for Rupert Murdoch's entertainment conglomerate - 21 Century Fox - is being played out. The intense, see-saw battle for the media empire, which includes Hollywood studios, cable networks and streaming businesses, isn...

Television Production House Post Production
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/21/sky.jpg?itok=iRHwz8oe
Sky News gets 15-year commitment from Disney in takeover battle

MUMBAI: Disney has refrained from selling Sky News without the U.K government’s permission and offered British authorities a commitment to operate Sky News for 15 years. For its part, 21st Century Fox has offered new commitments in an attempt to get its $15 billion bid for Sky over the finish line...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/21/discovery.jpg?itok=8KddrXNz
Discovery picks Park Avenue address for new global HQ

MUMBAI: Discovery Inc. has selected a Park Avenue address for its new global headquarters. The company is also expanding facilities and adding jobs in Virginia. The company has signed a long-term lease with TF Cornerstone to occupy the entire space of 230 Park Ave South. According to GlobeSt.com,...

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/21/cr7.jpg?itok=-tKIxKC0
NBCUniversal accuses BeoutQ of illegal streaming of FIFA World Cup in MENA

MUMBAI: NBCUniversal, an American multi-national media conglomerate owned by Comcast, has accused a pirated streaming service called BeoutQ in the Middle East and North Africa (MENA) for illegally broadcasting the FIFA 2018 World Cup matches. NBC's Telemundo unit, which holds the Spanish-language...

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/21/Sony.jpg?itok=YEJWnfIl
How Sony is bringing the FIFA World Cup 2018

MUMBAI: Sports broadcasting is no ordinary business. Just ask Star India and Sony Network Pictures (SPN) India – who often slug it out against each other for the rights of premium sporting properties. The two high rollers of Indian sports broadcasting play by one simple rule: high risks, high...

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/20/mpa.jpg?itok=vqd31YXu
Sports media rights to soar 22% in 2018 in Asia Pacific: MPA

The market value of sports media rights is set to reach US$5.0 billion in Asia Pacific ex-China this year, according to Asia Pacific Sports In The Age Of Streaming, a new report published by Media Partners Asia (MPA).

Television TV Channels Sports

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories