Regulators

Guild seeks tax sops, to submit pre-Budget memorandum to I&B ministry

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NEW DELHI: The film industry wants abolition of customs/excise duty, countervailing duty on import of broadcasting/post-production and animation equipment, set-top boxes (STBs) and removal of octroi on raw stock and exemption of service tax on duplication of prints to be removed on export sales.

The Film and Television Producers Guild of India is meeting information and broadcasting minister Priya Ranjan Dasmunsi shortly to submit the Pre-Budget Memorandum highlighting issues concerning the entertainment industry.
The demands will include an increase in proportion of foreign direct investment in media from 26 per cent to 74 per cent for Direct to Home (DTH).

Subsidies and incentives will be sought for boosting export of animation content being driven out of India on the lines of tax benefits provided by Canadian Government for creating local animation content.

There is also a demand for creation of Special Export Zones (SEZs) for the entertainment media to facilitate promotion of Indian exports content, and widening the definition of industrial undertaking under Section 72A of the Income Tax Act, 1961 to include electronic media (TV broadcasting).

Another demand is for reduction of the base for fringe benefit tax from 20 per cent to 5 per cent for the broadcasting industry, as in the case of computer software industry and exemption for broadcasting industry from service tax as in the case of print media.

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