The film industry was planning a nationwide shutdown to protest against central government’s decision to levy service tax. The strike was called by the Film Federation of India (FFI). However, after Finance Minister Pranab Mukherjee’s decision to exempt it, the industry has no plans to move on strike.
“There is not any strike happening and i'm happy and thankful with this decision. The film industry shouldn't be burdened with the service tax,” Bhatt, vice chairman of Film Producers’ Guild, told IANS.
“Exempting the film industry from the service tax is the most productive gift given by the finance minister. Had it been included, all the industry would has been wiped out,” he added.
However, it was called off till the budget session after the industry officials met Mukherjee.
“I am glad that the goverment has exempted the film indusrty from service tax. It's positve news for the industry. Had it been imposed, the load on producers would have increased so much. I'M HOPING in future increasingly initiatives are taken to reduce the weight at the industry, specilly at the producers,” Behl told IANS.
Sanjeev Lamba, CEO, Reliance Entertainment, also termed the tax exemption an enormous positive for the industry.
“With no service tax now on transfer of copyright and entertainment becoming part of the negative list, it is a huge positive for the industry,” Lamba said.
“There will however be a negative impact because of the general increase in service tax, excise and custom duties.The determination of bringing GST from August 12, sounds quite optimistic. It's going to bring radical and positive changes within the taxation,” he added. – IANS
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