MUMBAI: The Indian Broadcasting Foundation has urged the government to exempt the broadcast industry from service tax as part of its wish list for the forthcoming Union Budget.
In a pre-budget memorandum submitted to the finance minister, the IBF has listed out the major issues affecting the broadcasting industry. Pointing out that advertisements in the electronic media are subject to service tax whereas the same are exempt from the tax in print media, the IBF says there is no justification for such discrimination.
Failing a full exemption, the IBF has asked for service tax to be charged on 25 per cent of the advertising revenue, as an average 75 per cent of the cost is for content creation and not for generating the revenue from the advertisements, the IBF argues. It has also recommended customs duty on broadcasting equipment to be kept at par with telecom equipment , currently at five per cent.
The plea for exemption on customs duty for set top boxes for at least another three year continues in the IBF's wish list for the second year running. Also added is a plea for no excise duty on STBs, to encourage indigenous production of the boxes.
The IBF has also asked for a maximum rate of five per cent as a prescribed TDS rate for airtime sales, to do away with the practice of foreign broadcasters having to apply to the IT assessing officers every year.
