Budget impact on entertainment and media sector: PwC view

Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

With an estimated industry size of USD 12 billion, the entertainment and media sector is growing at compound annual growth rate (CARG) of 15%. The key dominating segments include film and television, contributing USD 7 billion.

Here are snapshots of benefits to the industry from Budget '09

Income Tax - Industry Specific Provisions:

- Withholding tax on advertising contracts increased from 1% to 2% (excluding surcharge and cess).

Income Tax - Other Important Provisions:

- New direct tax code to be released for public comments in 45 days.

- No change in corporate tax rate.

- Exemption limit for individuals enhanced by Rs 10,000 / Rs 15,000. Surcharge on personal tax waived.

- FBT abolished. Fringe benefits/perquisites now taxable in employees' hands.

 

For more see attachment