Why Do “The South Indian Cinema Field”Artists- Fast Against the “Service Tax” in India?

The Government of India had been planning to tax the services of the persons in the cinema industry, while extending service tax to many services.

Protesting against the government’s above decision to bring cinema industry under the “service tax”, the film industry had gone on a ‘one day’ token strike on 23rd February 2012.

However, the Government of India implemented the new ‘service charges’ w.e.f 1st July 2012, including the film industry under the service taxes (12.36%).

On 7th January 2013, the entire South Indian Cinema World observed a ‘one day’ fasting against ‘service tax’ on the film industry and the members of the following Unions/Associations participated in the ‘fasting’ -strike:

  • The SouthIndian Film Artistes’ Association
  • The Tamil Film Producers’ Council (TFPC)
  • The Federation of Film Employees’ Federation of South India (FEFSI)
  • The South Indian Film Chamber Of Commerce and
  • The Associations for Television artists
Already  the service tax  imposition has been effective since 1st July 2012.  As the next Annual Budget Session is due  to start next month the affected people of the cinema  field have started raising their united voices against service tax.

According to the Cinema Artists the imposition of 12.36% of Service Tax will add to the already increased cost of production and that they have been already paying ‘Income Tax’.

In response to  their agitations, the artists hope that the Government of India would exempt them from ‘service tax’.

Perhaps, the artists hope that the rate of service tax would be reduced from 12.36% , if not completely exempted or  at least the rate of tax would not be further increased in the next budget.

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