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Monday, 2 July 2012

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Signing an autograph by Bollywood celebrity will be charged under Service Tax

Government confirmed that signing autograph, shaking hands and clicking photos with fans would be charged as Service Tax
Government made clarity over the statement of service tax collections from the Bollywood actors and said that besides performing in serials and movies, actors would have to pay service tax on signing an autograph, shaking hands and clicking photographs with fan will be under service tax.
"Besides all other activities by an artist in other art forms such as western music or dance, modern theatres, performance of actors in films or television serials, activities involved with fans would be taxable. That includes signing an autograph, shaking hands with fan and clicking photograph with any body not including non fan," the government paper said.
The release made it clear that the tax would be charged at source and it would be an absolute amount rather than on percentage basis.
An official of tax authority said "Based on the reputation of the actor the tax will be ranging between Rs 1.2 to Rs 35 per activity. If its actor like Uday Chopra, he will have to pay Rs 1.2 per autograph or photograph while if its Amitabh Bachchan he will have to pay Rs 35. Few like Dolly Bindra who never gets a fan will be exempt from tax."
Bollywood and television industry expressed its displeasure on government's move.
"WTF, its insult to us for asking such a useless payment," said Shahrukh Khan, top bollywood actor "Who will decide who is more or less valuable."
Government said that the tax would have double effect, first it would curb actors and actresses to create artificial fan base to show his or her strength and second will add the revenue to government's kitty.
"In a way, it would reduce useless activities from the fans," said government official. However, he kept mum on Rajesh Khanna's forever fan base.
In a recent development, the government is planning to charge service tax on the twits to per follower that made by actors.

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