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
Republic TV to track real-time data for Gujarat elections

MUMBAI: Republic TV has partnered data-science company Gramener to track real-time data, along with analysis, during the Gujarat elections. According to a release sent by Republic TV, “Gramener will help enhance the visual look both on-air and on Republic’s digital platforms to present the data in...

Television TV Channels News Broadcasting
Nakul Chopra is new BARC chairman

MUMBAI: Nakul Chopra, currently president of Advertising Agencies Association of India (AAAI) and senior advisor of Publicis Communications, has been elected as the next chairman of BARC India. Chopra succeeds Viacom18 group CEO Sudhanshu Vats, who has completed his one-year tenure as chairman.

Television TV Channels Viewership
Nitin Kukreja joins iQuest

Former Star India sports head Nitin Kukreja has joined iQuest Enterprises as its chief executive officer. Kukreja had left Star in March this year. IQuest is an enterprise of Nimmagadda Prasad, the former owner of the Maa TV group, who has multiple business interests ranging from infrastructure to...

Television TV Channels Sports
Sun TV's unassailable lead continues, while Zee TV leads Hindi across genre

BENGALURU: The Sun network's flagship Tamil general entertainment channel (GEC) Sun TV continued its lead in ratings across all GECs on Indian television for week 48 of 2017 (25 November to 1 December 2017) according to Broadcast Audience Research Council (BARC) weekly ratings data

Television TV Channels GECs
Republic TV, BTVI join hands for budget coverage

MUMBAI: Republic TV, spearheaded by Arnab Goswami, and Business Television India (BTVI) have entered into an alliance for content and programming around Union Budget 2018. The Republic TV- BTVI alliance promises to offer viewers a distinctive experience.

Television TV Channels News Broadcasting
Mairu Gupta and the art of building the NBA in India

MUMBAI: For basketball fans worldwide, the US National Basketball Association (NBA) represents the mecca of the sport. But in India, the NBA has had its task cut out, what with cricket presenting a near impenetrable line of defence.

Television TV Channels Sports
CNN-News18 'Indian of the year' 2017 special Telecast on 9 and 10 December

MUMBAI: The awards night of the annual and flagship initiative of CNN-News18, ‘Indian of the Year – 2017’ will be telecasted on the 9 and 10 of December at 9:30 PM on the channel. The initiative, whichrecognizes and awards the exceptional contribution and achievements of the iconic Indian citizens...

Television TV Channels News Broadcasting
Music channels bet on shows to boost viewership

MUMBAI: Seems like music channels are playing second fiddle to online music platforms when it comes to playing tracks. In an attempt to grab more eyeballs, pure-play music channels on television are moving away from the music content and focusing more on the youth-centric shows.

Television TV Channels Music and Youth
Zee TV leads Hindi GECs in week 48 of Barc ratings

MUMBAI: Zee TV emerged as the leader among Hindi general entertainment channels (urban + rural) dethroning Zee Anmol, according to Broadcast Audience Research Council’s (BARC) all-India data for week 48.

Television TV Channels GECs

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories