Deadline for film producers to get MVAT nears

MUMBAI: The countdown has begun. 28 February, 2007 is the last day for film producers to register themselves with the department of sales tax and obtain a Maharashtra Value Added Tax (MVAT) number.


Says Indian Motion Picture Distributors’ Association (IMPDA) secretary Natrajan, “As per the notification issued by the finance department of the government of Mahararashtra under Maharashtra Value Added Tax Act, any sale or transfer of any ‘copyright’ is subject to levy of VAT at the rate of four per cent with effect from 1 April, 2005. Hence, all forms of transfer and sale of ‘copyright’ in any work now become liable to VAT. Thus, MVAT is said to be applicable on film production, distribution and exhibition activities.”


He adds, “After a representation from the production and distribution sector was made to the chief minister Vilasrao Deshmukh, the time limit given to the members to register with the Department of Sales Tax and obtain MVAT number was extended to 28 February, 2007. Only those distributors who obtain registration number on or before that date will be eligible to enjoy the benefit of exemption granted by government for the period upto 31 March, 2005; otherwise the department will claim sales tax from 1 April, 2001.”

Comments

comments