As per a new rule by the Government, all actors (be it from films or TV) will be required to pay 12% service tax on their earnings in addition to their income tax payments.
Effective July 1, the government has embraced new taxation of services by introducing a negative list. Any service out of this list or out of the exempted list of services (which may be changed from time to time) will be charged service tax. However, if an individual or a firm has an annual income of less than Rs 10 lakh, the service provider can avail exemption and shall not be obliged to pay any tax.
Needless to say this new rule has not gone down too well with members of the film fraternity. Keeping her humour intact, Farah Khan tweeted, “N just as iv turned ‘actress’ the govt.has decided 2 also charge 12.5% service tax 2 all actors! this is tooo much.kitna nichodogey yaar?” Sonam Kapoor tweeted, “Really more tax. This government sucks. Corrupt and useless. We are just filling every politicians pockets with money. If my money really went into developing my country Id be more than happy to give it.”
Arshad Warsi also seemed unhappy with the new rule when he tweeted, “With this service tax, there will be some more jobless actors… Blame it on the tax. Very soon all Actors payment will go directly to the Govt n they will start giving us the little percent that is left for us as salary.”