New Delhi : The government should resolve the issue of double taxation on the media and entertainment industry by rationalising the good and services tax, an industry association said Wednesday.
In a representation to the finance minister, Assocham President Swati Piramal said goods and services tax levied on media and entertainment companies should be rationalised to ensure growth of the sector.
She said the GST should take into account the overall policy of ensuring affordability of services rendered by media and entertainment sector both through an appropriate rate of tax on services and on sale of content.
Piramal pointed out that both VAT and service taxes were levied on some transaction in media and entertainment industry resulting in the problem of double taxation.
According to Assocham, varying GST rates across goods and services would give rise to problem of classification on transfer of copyright in media and entertainment sector.
One of the challenges in resolving this problem under the GST regime would be determination of correct classification of subject matter of levy- goods or services, Assocham said in a statement.
Piramal said in many transactions in media and entertainment sector, input taxes paid were not available for credit. This results in the problem of double taxation.
Sun, 12 Feb 2012 15:14:41
