iWorld
Report on Shemaroo

Budget 2020 proposals offer few benefits to M&E industry: EY India

Some of the changes may have a material impact.

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2020/02/04/grup.jpg?itok=7bUdjglr

MUMBAI: As always, the industry's hopes from union budget 2020 were high. According to a report from EY India while the budget proposals offer few benefits to the industry, some of the changes may have a material impact which will need to be assessed.

“The budget proposals will provide relief to the foreign companies earning income such as license fees from making compliances in India, provide clarity and do away with avoidable tax litigation through reduction in withholding tax rate for technical fees as well as withholding tax provisions for e-commerce operators. New media and digital business qualifying under start up incentives will get additional impetus from the measures proposed. Reduction in newsprint import duties will help print industry which is going through a tough business cycle. Tax amnesty scheme for resolution of pending litigation offers an opportunity to reassess the tax game in the country,” the report adds.

The report states that the proposed alternate personal tax regime will be relevant to mass employment by the industry in its content production processes, however, it is difficult to determine whether the regime will provide a material differential cash surplus to the employed.

It also adds that expansion of domestic tax regime will lead to tax uncertainty for foreign companies with no resource to any credible advance ruling mechanism which will allow them to understand their tax position upfront.

“Removal of exclusion relating to theatrical receipts would certainly put pressure on the finances of the film businesses with a 10 per cent withholding tax rate and increase their compliance burden. The uncertainty attached to film business certainly makes a strong case for a rate much lower than applicable 10 per cent withholding tax rate. Increase in import duties will lead to increased cost for businesses,” it adds.

Key impacts:

·  Withholding tax rate on “fees for technical services” reduced from 10 per cent to 2 per cent, reducing potential litigation on withholding tax rate on content production services and certain other services which do not qualify as “professional services”.

·  Exclusion of consideration from “sale, distribution or exhibition of cinematographic films” removed from “royalty” definition that may make theatrical and other receipts from exploitation of cinematographic films taxable and subject to withholding tax at 10 per cent.

·  Expansion of domestic source rule will bring to tax income of a nonresident from (i) advertisements targeted at a customer located in India

(ii) sale of data collected from a person in India and (iii) sale of goods or services using data of customer located in India.

·  The list of services subject to Equalisation Levy provisions remain unchanged.

·  Exemption provided to non-residents earning royalty and fees for technical services from the requirement of filing a return of income, subject to fulfilment of stated conditions.

·  Relief provided d to the print industry by reduction in customs duty on newsprint and paper.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/04/13/-shivank_agarwal-anish_khandelwal.jpg?itok=mjh_uDQN
Mitron turns one: Vernacular, monetisation to be key focus areas

KOLKATA: In last June, a number of short video platforms stepped into the limelight after the Indian government’s unceremonious ban on popular Chinese-origin app, TikTok. After riding on the initial wave of fame, these homegrown apps have now started solidifying their business models. This comes at...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/04/12/img_12042021_190536_800_x_800_pixel.jpg?itok=4B3IrxrE
Twitter introduces new features for more interactive Cricket Season

KOLKATA: Microblogging site Twitter has added a couple of new features to create a more interactive experience for the platform’s users this cricket season for. Among the new features, Spaces, the social media giant’s new Clubhouse like feature, has generated a great deal of buzz among Tweeple.

iWorld Social Media
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/04/12/img_12042021_171637_800_x_800_pixel.jpg?itok=x0Ea6aDj
Vi kicks off online gaming tournament for IPL 2021 viewers

KOLKATA: With India Premier League (IPL) kicking in, the tournament’s associate media sponsor Vi has rolled out an engaging initiative based on the popular game concept Play Along’ i.e. play while you watch the live T20 league. One can play solo or with friends every day during the upcoming matches...

iWorld Telecom
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/04/12/img_12042021_153157_800_x_800_pixel.jpg?itok=H-Ube4_n
IPL 2021: Short video app Roposo & Glance partner with CSK

MUMBAI: InMobi-owned short video app Roposo and lock screen content platform Glance have partnered with Indian Premier League team Chennai Super Kings (CSK) as its official lock screen partner and official short video app partner, respectively. The team will be live-streaming special shows on...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/04/12/chingri.jpg?itok=EJMV7Enq
Chingari strikes music licensing deal with Koinage Records

NEW DELHI: To make its presence felt in the world of new age music, Indian short video app Chingari has announced its collaboration with popular music label Koinage Records. Under the licensing deal, all the released and upcoming tracks of the record label will be now available to Chingari users to...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/04/12/practically.jpg?itok=EDVmv7n6
Edtech newbie Practically sets 1 million users as next milestone

KOLKATA: 2020 has broken all the barriers for edtech players in India, especially the start-ups. With educational institutes being shut for most of the year, a number of new players have gained momentum in their growth journey. Investment by venture capital (VC) in e-learning firms has quadrupled...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/04/11/img_11042021_122626_800_x_800_pixel.jpg?itok=gGV614k9
Crime thrillers can take Indian entertainment global: writer-creator Piyush Jha

MUMBAI: Post the Covid2019 outbreak, the Indian entertainment industry witnessed revolutionary changes as OTT platforms gained massive popularity among audiences. OTT originals which were primarily confined to western countries landed on Indian shores, and this inevitable change motivated many...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/04/11/img_11042021_115126_800_x_800_pixel.jpg?itok=pRlsst6s
Transition from print to digital is inevitable in comic industry: CBAM summit

NEW DELHI: The comic book industry is a well-recognised part of Indian popular culture, having produced many familiar cultural icons like Suppandi, Chacha Chaudhary, Tenali Raman, Detective Moochhwala, Shikkari Shambhu, Mayavi, and Akbar-Birbal. The industry was at its peak during the late 1980s...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/04/10/img_10042021_175746_800_x_800_pixel.jpg?itok=DMNm3d4D
Telugu OTT Aha fosters female entrepreneurs with ‘Women In Focus’ initiative

KOLKATA: Taking a leaf out of their upcoming women-centric original web series 11th Hour, Telugu OTT platform Aha has partnered with We Hub – India’s first state-led incubator for women entrepreneurs backed by the government in Telangana – to kickstart aha X We Hub: Women In Focus initiative that...

iWorld Over The Top Services

Sign up for our Newsletter

subscribe for latest stories

* indicates required