• Welcome to DreamDTH Forums
    An online community for the television enthusiasts!
    Log in or Register

CAG feels govt can recover Rs 360 billion in taxes from entertainment industry


22 Mar 2011
Reaction score
Concerned over tax evasion and the need to widen tax base, the Comptroller and Auditor General (CAG) has recommended tighter tax norms including mandatory Tax Deduction at Source for the Indian cinema and television industry.

It said the 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).

CAG estimated in the report laid in Parliament that the tax could go up to over Rs 360 billion. CAG suggested that this 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.

Ironically, the report came at a time when the industry was meeting in Mumbai at the FICCI Frames to complain about the apathy of the Government towards it - as evidenced in the Union Budget.

The Auditor said 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," it said.

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.

CAG said the film industry registered a growth of 9.7 per cent between 2005 and 2009 and generated revenues of around Rs 95 billion in 2009.

The television industry grew at 16.9 per cent annually during the period 2005-2009, generating revenue of Rs 265.5 billion in 2009.

The film and TV industry, it noted, is expected to grow at 16.5 per cent per annum in the next five years to reach Rs 658.5 billion by 2014.
Thread starter Similar threads Forum Replies Date
Dinesh jain Why CAG feels that Tata Sky wasunduly favoured by DoS Tata Sky 13
R Tata Sky was unduly favoured, says CAG Tata Sky 2
Bishnu15 DoS undercharged, reduced price of transponders for Sun Direct: CAG Sun Direct 1
Aayush Aggarwal CAG hauls up DoS on DTH satellite capacity management Tata Sky 14
Duke Department of space irregularities benefited DTH operators, says CAG report General DTH News & Discussions 0
D Department of Space gave 'Certain Benefits' to Tata Sky: CAG Tata Sky 75
S CAG raps ISRO for foreign satellite in its slot Satellite News & Updates 0
Bapun Raz Arasu puts up dismal revenue performance: CAG Digital Cable TV 1
Shivraj Good News Feels Happy With my work Social Chat 4
DreamDTH.com Article IBF feels stopping of Government Ads on TV would k!ll the sector DreamDTH Articles Discussions 0
S Feels good to be back Achievements & Wishes 7
Bapun Raz Airtel Digital TV feels pricing would be cardinal for premier movie shows Airtel Digital TV 0
Bapun Raz Katrina feels uncomfortable about marriage talks Bollywood 1
V Tata(Sky feels the pinch as GSat12 at 83.0°E does not have Ku-band transponders Tata Sky 5
Napster It feels nice to make a film: Lara Dutta Bollywood 0
DreamDTH.com Article Govt has no role in restoration of TV5 and ABN Andhra Jyothi on cable networks, says I&B Minister Prakash Javadekar DreamDTH Articles Discussions 0
imr4444 Kapil Sibal-backed HTN News 'blacked out', channel blames Modi govt General DTH News & Discussions 1
A Govt hikes advertisement rates for private TV channels TV Channels News 0
somnath chakraborty IBF board appoints four VPs to liaise with govt, stakeholders TV Channels News 0
S Puducherry govt directs MSOs, LCOs to stop transmitting analogue signals from 30 April Arasu, SCV, TCCL & VK Digital MSOs 0
rockstar08 Govt wants to know what you watch on TV, proposes installing chips in set-top boxes General DTH News & Discussions 61
Manu Breaking AIADMK to launch Amma TV to promote govt schemes TV Channels News 0
saravananML Channels available in TN Govt cable is not available in TCCL Arasu, SCV, TCCL & VK Digital MSOs 3
rahul2010 Breaking Punjab govt plans to cut levy on DTH, to bring cable TV under tax ambit Fastway Digital Cable TV 0
Shashank Karnataka govt to start new tv channel (tentative name Gram swaraj) TV Channels News 1

Similar threads

Top Bottom
AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock