Impact of Budget 2020 on the Media & Entertainment Industry

Budget

Authored by Rakesh Jariwala, Partner – International Tax Services, EY India, Budget Connect 2020 explains the impact of the recently proposed Budget on Media & Entertainment Sector.

In recent times, media businesses have exhibited remarkable growth despite various tax obstacles faced. Content and entertainment provide people with much-needed relief from the stresses in their lives. It is one of the biggest strengths of this sector, making it relevant for people across the spectrum.

Budget Connect 2020 takes a look at how the budget proposals will provide relief to the foreign companies earning income such as license fees from making compliances in India, provide clarity and do away with avoidable tax litigation through a reduction in withholding tax rate for technical fees as well as withholding tax provisions for e-commerce operators.

“New media and digital business qualifying under start-up incentives will get additional impetus from the measures proposed. Reduction in newsprint import duties will help the print industry which is going through a tough business cycle,” the report adds.

Another key aspect put forth include: Removal of exclusion relating to theatrical receipts would certainly put pressure on the finances of the film businesses with a 10% withholding tax rate and increase their compliance burden.

You can read Rakesh Jariwala‘s entire report here.

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