New Delhi: The Centre should act as a
coordinator to bring uniformity in entertainment tax rates,
currently varying between 30 percent and 40 percent across
the country, for growth of the entertainment and media
industry, Assocham has said.
"Entertainment industry is anticipated to grow at a rate
of nearly 10 percent for the next five years and would reach
a level of Rs 1,000 billion...(however) uneven entertainment
tax which is already in excess would curb its growth," the
industry body said.
While entertainment is one of the basic needs of life,
the entertainment tax levied on release of films in cinema
halls is highly uneven across various states and is in excess
of 30-40 percent, the chamber said.
It further said that the government should remove
withholding tax on discounts given to advertising agencies by
newspapers on bulk purchases of space, stating that there is
no scope of this tax.
The Central Board of Direct Taxes is, however, of the
view that such discounts is in the nature of commission or
brokerage paid by newspapers to advertising agencies and
accordingly is liable to withholding tax, it said.
PTI
First Published: Sunday, November 22, 2009, 12:57