All film and TV actors have to pay 12.36 per cent service tax from July 1 onwards. Which means, Bollywood actors who get Rs 20 crore per film will have to pay 2.57 crore as service tax.
Producers are heard grumbling that the actors will throw this burden on them as they have already sent signals to that effect. Though most of the big stars get away with service tax being paid by producers, who in turn will fleece small time actors.
AMPTPP (Association of Motion Picture & TV Programme Producers) and IMPPA (Indian Motion Pictures Producers’ Association) are planning to send delegations to discuss this issue with the I & B ministry and the finance ministry.
Trade analyst Amod Mehra feels that the implementation of service tax will lead to generation of unaccounted earnings. He feels that the actors would scale down their remuneration on paper but increase their share in the film’s profit.