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Rediff.com  » Business » Budget: A mixed bag for the media industry

Budget: A mixed bag for the media industry

Last updated on: July 11, 2014 19:21 IST

Budget Provisions

To broaden the tax base, service tax leviable currently on sale of space or time for advertisements in broadcast media, namely radio or television, has been extended to cover such sales on other segments like online and mobile advertising.

Sale of advertisement space in print media, however, would remain excluded from service tax.  

Industry Expectation  

The multiple levies / taxation structure needs to be rationalized.  

The DTH and Cable TV services should be included in the negative list of service tax till the time GST comes into force.  

Rationalization of rates of Entertainment Tax across various States at a uniform level.  

Scheme for waiver of entertainment tax by State Governments for a period of 5 years for cable networks migrating from analogue to digital so as to incentivize and promote digitalization. 

Grant of infrastructure status to cable industry.  

Roll back the tax rate of 25% on royalties and fees for technical services.  

The license fee for DTH services to be reduced from present 10% to 6%.  

The exemption granted to digital cinema solution providers for the services rendered in relation to delivery of digital content in movie to cinema theatres through satellite by virtue of Notification 12/2007 – ST dated 1-3- 2007 should continue. 

Income Tax benefits similar to those mentioned under section 80-IA and 80-IB can be extended to the new multiplex or single screen theatres.  

10 Years Tax Holiday for Animation, gaming, and Visual Effects Industry. Lifting of service tax on studios developing original content.  

Road map for GST

Budget Impact  

Positive for print media as service tax exemption for sale of space for advertisements is continued. Negative for all Media players, other than Print media.  

Stock to watch  

HTMedia, DB Corp, Jagran Prakashan, Outlook  

The impact of the Union Budget on the Media & Entertainment sector is neutral. There is as such no big announcement in the budget of2014-15.  

 Please click here for the Complete Coverage of Budget 2014 -15

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