Central government has now decided to levy service tax on film and TV actors. As per the new rule, all actors should pay 12% service tax on their earnings in addition to their income tax payments.
Effective from July 1, the government has embraced new taxation of services by introducing a negative list. Any service out of this list or out of the exempted list of services (which may be changed from time to time) will be charged service tax. Likewise any individual or firm which has an annual income of less than Rs. 10 lakh, shall not be obliged to pay any tax.
So let's see how Kollywood reacts to this!
