The central government's decision to levy a 12.36% service tax on the remuneration actors recieve has reportedly irked some top stars of the Telugu film industries.
"Only a few weeks ago, the Copyright Amendment Act came into effect, and now this. The government is an anti-film industry", a senior stake holder of the industry said.
From 1st July, 2012 the government has embraced the tax by introducing a negative list. Any service out of this list or out of the exempted list of services (which may be changed from time to time) will be charged service tax.
In the entertainment sector, services of commercial artists, performers, TV and film actors, directors and reality show judges will be subjected to service tax. Other forms of entertainment such as magic shows, mimicry, western music or dance, modern theatres, brand ambassadors, etc, will also be taxed.
Well, we wonder if the service tax is going to increase the remunerations too.