ITV

Tag: value-added tax

  • IMI wants tax to reduce from 12.5% to 4%

    IMI wants tax to reduce from 12.5% to 4%

    MUMBAI: In a pre-budget memorandum, the beleaguered music industry has suggested a reclassification of its current revenue neutral rate (RNR) status to a new in par Intellectual Property Rights (IPR) status under the new uniform value-added tax (VAT) regime to be implemented from 1 April 2005.

    Indian Music Industry (IMI), an association of music companies, states in the memorandum that the industry be classified at par with other IPR, in which the tax structure be between 0-4 per cent.

    The industry is currently categorised under the RNR category wherein a tax rate of 12.5 per cent would be applicable.

    The music industry has seen losses of more than Rs 18 billion during last three years, the IMI claims. This can be attributed to two major external factors – piracy and improper taxation.

    IMI has recommended a 20 per cent imposition on cess tax on those plants which are not using the international Source Identification (SID) code. The code created by International Federation of the Phonographic Industry (IFPI) helps trace CDs to the plants from where they are manufactured.

    However, in India most CD manufacturers or entertainment companies refuse to implement the same within their organisation.

    The implementation will create a direct impact on piracy and provide additional funds for the government.

    IMI also wants an anti-piracy task force to be created, similar to the Central Industry Security Force, to defend IPR.
     

  • VAT issue threatens Athens olympics coverage

    VAT issue threatens Athens olympics coverage

    MUMBAI: Uncertaintity on whether Greek government would agree to provide refunds of Value Added Tax (VAT) has been sending danger signals to television broadcasters outside the European Union (EU).

    If the government disagrees, broadcasters will have to crop their Athens 2004 olympics games coverage.

    In previous years, host countries have refunded VAT paid on services and facilities connected with the production of olympics coverage. But Greece is yet to commit refunding VAT paid on transmission charges and have been giving negative responses so far.

    This time VAT refunds are guaranteed only to broadcasters which have a registered corporate entity in the EU which means that large broadcasting organisations in some of the wealthier countries outside of the EU will be able to claim refunds, but broadcasters which do not have corporate entities in Europe will have to pay the tax.

    This is despite the enormous promotional benefits that Greece will receive overseas.

    Asia Pacific Broadcasting Union (ABU) secretary-general David Astley is quoted in media reports as saying the soaring Euro and the refusal to refund VAT payments was unfairly slugging his members.

    The ABU represents more than 100 national broadcasters and 25 Olympic territories, and its members have a combined viewership of 3.7 billion people.