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Tamil Nadu Theatres on indefinite strike, Film Industry comes in support

Superstar Rajinikanth took to twitter to extend support to Tamil Nadu Film Industry and said, “Keeping in mind the livelihood of Lakhs of people in the tamil film industry, I sincerely request the TN GOVT to seriously consider our plea”

Protesting against the additional corporation tax in the tickets apart from Goods and Services Tax, and requesting permission to hike the ticket rates, around 1000 cinemas in the state are on indefinite strike since Monday. They have halted advance booking from Sunday while a few of them shut on the same day.

GST puts cinema tickets under two slabs, 28% and 18% for tickets ranging above 100 and below respectively. Apart from this increase, the state government is imposing additional 30% municipal tax on theatres. In other South Indian states Rs 100 ticket would cost Rs 118 inclusive GST, but it would cost Rs 148 in Tamil Nadu all-encompassing GST and corporation tax. It is the only state in the country to announce a separate tax in addition to GST.

Also theatres put forth another request to rationalise the ticket prices, which were fixed way back in 2007. Theatre owners said that there has been no hike in ticket prices for a decade now effecting theatres in the suburbs and villages.

The government order proclaiming the state will levy 30% entertainment tax which will be amassed by the local bodies, in addition to GST was passed on Friday. To lower the anguish of the producers of the recently-release films, Tamil Films Producers Council president Vishal, while opposing the additional 30% entertainment tax asked the theatre owners to call off the strike or at least to defer it by a week. The negotiations between the theatre owners and producers to resolve the bottleneck failed which led to indefinite strike since Monday. The meeting of Tamil film producers council, South Indian Artistes Association, along with the theatre owners and distributors with Chief Minister K Palaniswami on Monday failed to yield any positive result.

Tamil Nadu Cinema Theatre Owners Federation president Abirami Ramanathan earlier said that resolution to go foray had come out of the blue as the theatre owners were kept in the dark about the double taxation. He said that when Kerala Government has withdrawn the tax, Tamil Nadu government has to do the same. He iterated that they are not against GST and said that the so many taxes would encourage people to illegally download films.

The Tamil Film Fraternity came in support of the theatre owners. Actor Kamal Hassan, hinting at an agitation strongly voice “Let’s request first as gentlemen should. Then we shall see”. Earlier, lamenting the state government he had said, “Filmmaking in the state has been made difficult deliberately. There are further tortures and systemic corruption that the film industry has to endure under this regime.”

Actor Arjun said that the local Body tax issued on top of GST will make industry suffer. He believes that no one will come forward to produce films in TN with such extortionate rates. He requested to save the Tamil cinema like Director and Producer Shankar Shanmugam who also said that 48-58% is too much of tax.

Actor Siddarth held that “The Tamil Film Industry must stand united. We are being played by this center-state confusion. #GST is one nation one tax! No exceptions!”

Harris Jayaraj held that he never thought the GSt would crush the 10lakhs family of Tamil Cinema along with others

Tamil Lyricist and Dialogue Writer Madhan Karky hoped that the tax is revised and offered to reduce 15% off my remuneration for songs and dialogues, to help the industry.

Lyca Productions, which is currently producing Rajinikanth’s “2.0” said it would not take up future projects in Tamil Nadu if there was no clarity on the tax structure.

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One Nation, One Tax: 5 Things You Should Know Ahead Of GST Rollout

One Nation, One Tax: 5 Things You Should Know Ahead Of GST Rollout

The government is all set to roll out the goods and services tax (GST) at the stroke of the midnight on June 30, 2017. All states/union territories, except Jammu & Kashmir, have approved the state goods & services Act (SGST) for ensuring the roll out. From July 1, India will move to a one-tax, one-nation regime, and all goods and services will be taxed in four slabs – 5%, 12%, 18% and 28% – wherever they are purchased.

How Smaller, Decentralised Solutions Can Help India Meet Its Social-Development Goals

Relying on large, centralised programmes such as Swachh Bharat Mission and National Rural Drinking Water Programme to provide universal access to basic necessities would require 30-40% more government spending than current levels over the next 15 years, an analysis by Dalberg, a global strategy and policy advisory firm focused on social impact, shows. Instead, Dalberg suggests, decentralised solutions can effectively plug the gaps, often at a fraction of the expense and time that conventional methods entail. Supplementing conventional efforts with smaller, decentralised solutions is imperative when viewed in the light of the fact that India needs to spend Rs 64 lakh crore ($1 trillion) up to 2030 to provide universal access to water, electricity and sanitation–an amount greater than three times the country’s total budgeted spending for 2016-17 (Rs 19.78 lakh crore).

Instant Perspective:


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28% tax on movie tickets above Rs100, GST rates lowered for 66items


In what comes as a major relief, the tax imposed on 66 items have been reduced to certain extent. Finance Minister Arun Jaitley said that based on the feedback from traders and civil societies, the decisions were taken at the 16th GST council meeting on Sunday. The committee recommended reduction in taxes for 133 items of which only 66 were accepted.

Currently entertainment tax is levied by individual states, ranging from 28-110%. The weighted average for the entire country is about 30%. As per the decision of the council, 18 percent tax is levied on movie tickets costing Rs 100 and below and those about 100 rupees will garner 28 percent tax. State governments give an exemption to cinema of the regional language. With GST there will be no such centralised exemption. However, the finance minister said if a state wants, it can refund the state GST for promoting regional cinema.

Description of serviceGST percent
Packaged food, including some fruits and vegetables, pickles, toppings, instant food, sauces
Cashew Nuts5
Computer Printers18
Plastic Turpolin18
School bags18
Exercise Books12
Children's drawing books0
Pre-cast Concrete pipes18
Parts of tractor18
Dental Wax18
Plastic beads18
workers in industries like textile, diamond processing

The traders, manufacturers and restaurant owners with turnover of up to Rs 75 lakh can pay taxes at the rate of 1, 2, and 5 percent and can opt for a composition scheme. In the next meeting of the Council on 18 June, it will take up lottery taxes and e-way bill.

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