Government auditor CAG today recommended tighter tax norms, including mandatory TDS, for the Indian cinema and television industry, which is estimated at over Rs 36,000 crore.  Concerned over tax evasion and the need to widen tax base, the Comptroller and Auditor General (CAG) in its report tabled in Parliament, suggested that payments for sale of distribution rights of films and time slots to television channels should be subject to the provisions of Tax Deduction at Source (TDS).

It would mean that entities making such payments would be required to deduct tax before making payments.

“…Provisions for deduction of TDS on sale of distribution rights and sharing of proceeds from exhibition of films may be introduced”, the CAG recommended.

The government auditor further said that all persons and entities associated with film and televising industry should be assessed in the specially created Film Circles.

Although the government has created four Film Circles at Mumbai, Chennai, Hyderabad and Bengaluru to effectively handle the assessments of entities related with film industry, 465 assesses were assessed outside the circle.

“Thus, the purpose of the creation of Film Circles to assess all film related assesses at one place is not fully serviced,” the CAG observed.

It also suggested that Permanent Account Number ( PAN )) be recorded while making payments to persons associated with the film industry as “in absence of this it would be difficult to trace the person to whom payment has been made”.

The Income Tax department, it suggested, should maintain coordination with the other Central Government Departments and States’ Revenue Departments to identify the probable assesses with a view to “widen the tax base and prevent tax evasion.”

It also wants the tax department to maintain records of incomplete and abandoned films.

India is the largest film producing country in the world. coming out with about 1,000 feature films every year.

The film industry, according to CAG, registered a growth of 9.7 per cent during 2005-2009 and generated revenues of around Rs 9,500 crore in 2009.

The television industry grew at 16.9 per cent per annum during the period 2005-2009 generating revenue of Rs 26,550 crore in 2009.

According to the estimates, the film and TV industry is expected to grow at 16.5 per cent per annum in the next five years to reach Rs 65,850 crore by 2014.

More Under Income Tax

0 Comments

  1. Tira.T says:

    Simply impossible, for various wellknown reasons. The hold of the magnanimous underworld apart, the entire corrupt bureaucracy’s bribe money and the loot of the politicians are safely invested for decades in the filmdom, and now in TV too. It is a well known fact that, a Mumbai-Pune-Nashik-Thane posting, like Hyderabad too, costs money and also annual payments. These, and the duplicate/bogus passports are arranged by the underworld/police so as to enable even petty govt. servants/Corpn. employees go on frequent foreign trips abroad. Something which is rampant and widespread from top to bottom of the bureaucracy and within the knowledge of investigating agencies can never be tackled by time servers!

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

October 2020
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031