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Tax troubles for Tollywood post bifurcation
By: Tupaki Desk | 7 Jun 2014 4:31 AM GMT
Tollywood, the second largest filmmaking industry in the country, is likely to be hit by the bifurcation of Andhra Pradesh.The Andhra Pradesh film Chamber of Commerce recently changed its name to Telugu film chamber of commerce to maintain its hold on both the regions of the state.
However the decision is not goes well with the members of Telangana film chamber which was born recently.According to the procedures, a film producer first need to register the film title at the film chamber.
After that he will get No Objection Certificate (NOC) from the chamber and then only he will go for censor formalities.The producer can also get tax benefits from the state government based on the NOC given by the chamber.Now the problem arising here is from where they need to get that the NOC certificate?
The Telangana film chamber is going to insist that if films are made in Telangana and if tax concessions and subsidies will be claimed from the Telangana state government, producers will have to take an NOC only from the Telangana Film Chamber of Commerce.
Telangana Film Chamber of Commerce president Vijayender Reddy said he will object if Telangana Govt give recognition to Telugu Film Chamber of Commerce. He said any state will have only one recognised film chamber and for any film to get tax concessions and other benefits from Telangana state, they should get NOC from Telangana Film Chamber of Commerce.
Reddy said that an NOC from Telugu Film Chamber of Commerce will not entitle a film to get tax subsidies and concessions from Telangana government. He added that if producers would like to avail benefits from the Andhra Pradesh government, they can take NOC from the A P Film Chamber of Commerce too. The representatives of Telangana chamber is going to meet CM KCR soon to discuss the issue and they are getting ready to raise objection with the name of Telugu Film Chamber of Commerce.
Earlier films produced outside the state had to pay 24 per cent entertainment tax in the undivided state.Now after the division if two separate Chambers exists, NOC from one state will lead to 24 per cent tax in other state which will be certainly harmful for producers.It’s high time to solve the issue in peaceful atmosphere otherwise it may harm the interests of aspiring film makers in both the telugu states.
However the decision is not goes well with the members of Telangana film chamber which was born recently.According to the procedures, a film producer first need to register the film title at the film chamber.
After that he will get No Objection Certificate (NOC) from the chamber and then only he will go for censor formalities.The producer can also get tax benefits from the state government based on the NOC given by the chamber.Now the problem arising here is from where they need to get that the NOC certificate?
The Telangana film chamber is going to insist that if films are made in Telangana and if tax concessions and subsidies will be claimed from the Telangana state government, producers will have to take an NOC only from the Telangana Film Chamber of Commerce.
Telangana Film Chamber of Commerce president Vijayender Reddy said he will object if Telangana Govt give recognition to Telugu Film Chamber of Commerce. He said any state will have only one recognised film chamber and for any film to get tax concessions and other benefits from Telangana state, they should get NOC from Telangana Film Chamber of Commerce.
Reddy said that an NOC from Telugu Film Chamber of Commerce will not entitle a film to get tax subsidies and concessions from Telangana government. He added that if producers would like to avail benefits from the Andhra Pradesh government, they can take NOC from the A P Film Chamber of Commerce too. The representatives of Telangana chamber is going to meet CM KCR soon to discuss the issue and they are getting ready to raise objection with the name of Telugu Film Chamber of Commerce.
Earlier films produced outside the state had to pay 24 per cent entertainment tax in the undivided state.Now after the division if two separate Chambers exists, NOC from one state will lead to 24 per cent tax in other state which will be certainly harmful for producers.It’s high time to solve the issue in peaceful atmosphere otherwise it may harm the interests of aspiring film makers in both the telugu states.
