IPL players, TV shows under tax net
The government proposes to bring in sportspersons participating in non-recognised sports events like Indian Premier League (IPL) under the service tax ambit from next fiscal.
Besides, judges in TV realty shows will also be brought under the tax net.
"Participants in non-recognised formats of sports like IPL will now pay a service tax of 12 per cent. Also, participants in TV reality shows will come under the service tax net," Central Board of Service Tax (CBEC) Chairman S K Goel told reporters here.
Services provided by film personalities will also attract the tax.
However, services provided to a recognised sports body by an individual as a player, referee, umpire, coach figures have been exempted from the tax net.
Besides, as per the Budget proposal, television personalities, musicians, entertainers and sportspersons, including IPL players, will have to shell out 20 per cent of their income generated in India as tax.
Globally, similar tax rates exist for both entertainers and sportspersons, ranging from 10-30 per cent.
"Therefore, a rate of 20 per cent on gross receipts is a reasonable rate of tax in case of non-resident, non-citizen entertainer. The tax rate in case of non-resident, non-citizen sports persons and non-resident sports associations also needs to be raised to 20 per cent," the Budget proposal said.
Attracted by the booming entertainment industry, artists and entertainers from across the globe are participating in TV shows and giving live performances.
Meanwhile, air ticket prices may come down marginally from April 1, as the government has done away with the dual rate structure of maximum service tax of Rupees 150 and Rupees 750 in case of economy class travel.
"...(dual rate structure) is being replaced by an ad valorem rate of twelve per cent, with abatement of 60 per cent, subject to the condition that no credit on inputs and capital goods is taken," the Budget said.
The effective service tax on AC and first rail ticket will be only 3.6 per cent as an abatement of 70 per cent has been proposed.
SOURCE: financialexpress.com
CAclubindia
