Bollywood Town rejoices service tax exemption on films

While, budget 2012 may not have proved productive in the basic needs sector but as far as entertainment industry is concerned, filmmakers are more than glad to have their film exempted from service tax.

Shedding light on the same, producer of various successful films like Namastey London and Singh is Kinng, Vipul Shah, claims it to be the most rational decision taken by Government of India. “It will certainly boost the business of films... In India, there are just a handful of films which make good theatrical business. And beyond that, if the producer has to pay service tax, it just kills the producer. This (the exemption) will reduce the losses films make and result in overall growth,” he says to one of the leading tabloids.

Actor-producer Sanjay Suri adds by stressing on the point that the decision has come as a breather as too much of cost already is involved in the filmmaking.

However, Vikram Malhotra, COO of Viacom 18 isn’t much pleased. “This is just the beginning. This is clearly not the only thing that will regulate the Indian film industry,” he concludes the discussion while talking to the tabloid.