Taxing times ahead for film producers?

MUMBAI : Film producers in India will soon be burdened with additional taxes, if a finance ministry regulation is passed.


 


As per a finance ministry proposal, a film producer who engages an artiste will have to pay tax at the rate of 12.24 per cent on the service charge paid to the artistes. According to the finance ministry, it is seriously toying with the idea of classifying actors as service providers.


 


All artistes will have to register themselves as service providers. Anyone with an annual turnover of above Rs 4,00,000 (Rs four lakh) will come under the new tax net.


 


The producers are now questioning the sanctity of being asked to bear a burden on behalf of the professionals they employ, when they themselves run such a high risk business.

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