Kerala - Kozhikode   

Cinemas asked to pay service tax

Special Correspondent

KOZHIKODE: Cinema owners have been warned that their licences will not be renewed unless they paid their service tax.

This was made clear at a "theatre adalat'' organised by the Kerala Chalachitra Academy here on Tuesday.

A service change of Re. 1 is levied on every cinema ticket. The amount of money realised by way of tax goes into a fund for artistes.

The academy secretary, M.K. Vivekanadan, said nearly Rs. 3 crores was due from the 1,200 cinemas belonging to seven categories.

Though about Rs. 75 lakhs is to be raised through service tax on cinema tickets, only less than 30 percent of the amount is collected. Cinemas have to pay service tax ranging from Rs. 2,000 to Rs. 25,000 every year, depending on the category to which they belong.

However, a few cine owners complained at the adalat that cinemas having low revenue are included in higher category, making it difficult for the owners to pay the service charge.

Cinema owners from Kozhikode, Malapuram, Wayanad, Kannur and Kasaragod participated in the adalat.

The Kerala Cine Exhibitors' Association secretary, T.P. Vasu, secretaries of grama panchayats and officials of Chalachithra Academy participated.

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