Actors Income Taxability

As per your query it is understood that you need information regarding the entertainment tax.

The Maharashtra government imposed an additional 10 percent entertainment duty on movie tickets priced between Rs.251 and Rs.350 from January 16, 2013. However, tickets costing between Re.1 and Rs.250 will see no fresh levy. The government has also allowed theatre owners to collect Rs.11 as service charges on all tickets, up from Rs.6 now. The new tax slab is somewhat like this: If a multiplex or theatre owner charges up to Rs 250 per ticket, he will not have to pay any additional surcharge.

If a ticket is priced between Rs 251 and Rs 350, the theatre or multiplex owner will be charged 10 per cent more; if a ticket is priced between Rs 351 and Rs 500, the owner will have to pay 15 per cent more, and if the ticket is priced more than Rs 501, the charge will be 20 per cent more. Mirror has learnt that theatre and multiplex owners will have to go for computerized booking system so that the number of tickets sold is on record. The Central Government's decision is effective from this month, and film and TV actors will be charged 12.36 per cent service tax on their earnings on programes and endorsements.

As per the new slab, for tickets up to Rs 250, there will be no additional tax other than the existing 45 per cent. For tickets costing Rs 251–350, government will charge 49.5 per cent entertainment tax. For tickets priced at Rs 351–500, the new tax will be 51.75 per cent, while tickets costing Rs 500 and above will attract 54 per cent tax. Maharashtra has 64 multiplexes. The state is expected to get additional revenue of Rs 30 crore in its coffers. Maharashtra has 64 multiplexes and 549 single-screen theatres. The cabinet has also approved to give a five-year tax exemption to single-screen theatres under municipal councils and a seven-year exemption in rural areas. Service tax is 12.36% and Maharashtra VAT is 5% on non-theatrical. The total tax in Maharashtra is 45% as entertainment tax, 5% VAT on non theatrical and in addition there is a stamp duty on the agreements entered in Maharashtra. The VAT on theatrical was waived from May 2011 but there is still a past issue from 2005 to 2011 which the government is yet to exempt. the main taxing jurisdiction may exempt foreign-source income from tax, the main taxing jurisdiction may exempt foreign-source income from tax if tax had been paid on it in another jurisdiction, or above some benchmark to not include tax haven jurisdictions, the main taxing jurisdiction may tax the foreign-source income but give a credit for foreign jurisdiction taxes paid.

I can tell you that there seems to be a general opinion that Akshay Kumar probably pays the most taxes with tax figures estimated consistently at about 20 crore. There seems to be some disagreement over who is next--Salman Khan or Shah Rukh Khan. One site says SRK pays about 18 crore and Salman 10 crore, but another site had those numbers reversed. As you might imagine, Amitabh Bachchan, Saif Ali Khan are also on that list of top tax payers and so are Kareeena Kapoor and Katrina Kaif.

Hope it helps!

Regards,

Anusha Singh