Film industry exempted from Service Tax

While announcing the Budget for the Financial year 2013-14, Finance Minister P. Chidambaram has given in to a long-standing demand and exempted it from the service tax net. The entire entertainment and amusement services industry has been placed in the negative list of sectors which are not required to pay the tax. Finance Minister also specifically stated that service tax would not be charged on film copyrights.

The entire film industry had been fighting for the exemption for the last 2 years. Film industries in the South have announced complete lock down for twice in the past 12 months. Finally, the efforts paid off. Telugu Film Chamber of Commerce had thanked the government for this movie and saving the already burdened producers.