The Tamil Nadu Theatre Owners Association is not too thrilled about GST. Here's why...
About 950 theatres or 1060 screens across Tamil Nadu will remain shut from Monday, following the theatre owners’ decision to go on an indefinite strike in protest against the imposition of 30 percent local body tax in addition to the Goods and Services Tax.
With confusion prevailing over ticket pricing, many theatres, including multiplexes, have withheld advance online and offline bookings for shows from Monday.
The GST Council has fixed the tax rate for movie tickets under two categories – 28 percent for tickets costing over Rs 100 and 18 percent for tickets priced below Rs 100.
“With the state government’s decision to levy local body tax along with the GST, the industry will not be able to survive such a huge taxation of 58 percent. It has become a matter of life and death for the industry. All the 950 theatres will remain shut from Monday,” said Tamil Nadu Theatre Owners Association joint secretary S Sridhar.
“If a ticket costs Rs 100, the theatres should pay Rs 58 as local body tax and GST. The theatres collect Rs 1 per ticket as maintenance charge. Out of the remaining Rs 41, 70 per cent which is Rs 28.7 would be paid either to the distributor or producer and the theatre owners would get only Rs 12.3. It is grossly inadequate to run the theatres,” he explained.
He noted that before the implementation of GST, theatre owners would get Rs 30 for a ticket costing Rs 100. All the southern states except Tamil Nadu have decided to scrap the entertainment tax, he said, adding that the Karnataka government has decided to reimburse the tax paid on a film ticket under the GST regime.
Meanwhile, the Tamil Nadu Municipal Administration Minister SP Velumani was holding talks with the Tamil Nadu Theatres Association on the taxation issue.
At present, ticket prices in the state are capped at Rs 50 for single screens and Rs 120 for multiplexes with three or more screens. The price is inclusive of entertainment tax, which ranges from 20-30 percent, based on location.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "President Mukherjee and PM Modi launching GST")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}