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Pictures: Kannada film stars protest against service tax

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A delegation of various wings of the Kannada film industry are planning to meet Union Finance Minister P Chidambaram to plead for withdrawal of service tax on artists and others in the industry.

Stating this, Kannada Cinema Artists Association President Ambareesh told reporters that the film industry was already burdened with entertainment tax and now service tax will hit the producers, distributors, exhibitors, artists and technicians.

"The artists do not have a permanent source of income. They are in the reckoning until they are saleable in the market. Levying service tax on film industry will doubly burden the industry," he said. Karnataka Film Chamber of Commerce President KV Chandrashekhar said confusion had cropped up as to who should bear the burden of service tax.

"Will it be the producer, distributor or exhibitor? The film industry is not a service industry, you know," he said.

Kannada Film Industry Protests

In February last year, activity in the entire Kannada film industry had come to a grinding halt over the issue.

Kannada Film Industry Protests

A delegation had met Governor HR Bharadwaj and handed over a memorandum demanding that the Union Government withdraw the service tax.

Kannada Film Industry Protests

Not only Sandalwood, but also Kollywood, Tollywood and Mollywood had a bandh on Monday (January 7) against the 12.36 percent service on actors.

Kannada Film Industry Protests

An actor pays 30% as tax from his income and the latest rule will make him to shell out 12% more, which means a total of 42 percent will be paid as tax.

Kannada Film Industry Protests

Will the government heed to their request by withdrawing the service tax? Only time can answer.

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