A new service tax regime, based on a negative list of exempted services, have come into effect from July 1st.With this, all services — except the 38 activities put on the negative list — will come under the tax at the increased rate of 12 per cent, as announced in the Union budget.

Along with many sections of the people, film industry also comes under this regime. And now actors earning 10 crores as remuneration will have to pay 1.2 Crore as service tax along with the regular 30% income tax to the Government. Andhra Pradesh Film Chamber of Commerce and Movie Artists’ Association are planning to launch an agitation against this new regime.

All the film associations in India are planning to give a representation to the Government to reduce the tax below 5%. They are even planning to go on a national bandh, if necessary.