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Service tax unfair, say actors

The film industry feels that the government’s decision to levy a 12.36% service tax on actors’ earnings is unreasonable. The stars have taken to Twitter to vent their angst against the ruling, which came into effect from July 1.

bollywood Updated: Jul 03, 2012 00:44 IST

The film industry feels that the government’s decision to levy a 12.36% service tax on actors’ earnings is unreasonable. The stars have taken to Twitter to vent their angst against the ruling, which came into effect from July 1.

“With this service tax, there will be some more jobless actors. Blame it on the tax,” wrote actor Arshad Warsi.

Filmmaker Farah Khan tweeted, "N just as iv turned actress the govt. has decided 2 also charge 12.5%service tax to all actors. this is tooo much. kitna nichodogey yaar?” (sic).

Actor Divya Dutta wrote, “... the most ridiculous decision ... I strongly appeal every one of our faculty to stand tall against the implementation of such injustice (sic)”.

Sonam Kapoor re-tweeted these.
Tanuj Garg of Balaji Motion Pictures says, “The burden will ultimately fall on the producer, making economics go haywire.”

Apart from this tax and the income tax, the actors will have to pay tax on their earnings from commercial endorsements every year.

TV actor Ram Kapoor, however, says, “Actors make a lot of money, and they should happily pay whatever taxes they are told to.”

-Navdeep Kaur Marwah

Rs. 3cr - What Shah Rukh Khan will have to shell out as service tax for films
Rs. 49.4 lakh - The amount Katrina Kaif may have to pay as service tax for film acting assignments

How much will they pay?
Aamir Khan
Acting fee:R40cr
Service tax: R4.9cr

Salman Khan
Acting fee: R27cr
Service tax: R3.37cr

Kareena Kapoor
Acting fee: R4cr
Service tax: R49.4lakh

Vidya Balan
Acting fee: R3cr
Service tax: R37.08 lakh