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  • Category: Miscellaneous

    Do the super hit moviemakers declare the same income as they claim as collections,to pay taxes

    We see and hear that so and so movie has become a mega box office hit with record collection evn on the first day. Then there are satellite rights, foreign rights and various other rights that earn huge money. We hear movies making multi crores and multi hundreds of cores. Even regional movies advertise as super hits and megahits.

    It is the ordinary people who make these movies big hits. While the movies are claiming as smash hits minting huge money, are the movie producers or all those who share the huge profit declare the real income and pay due taxes? What are they giving back to the society?

    When there is a mandatory social responsibility spending for the corporate why there is no CSR for the movie world who make many hundred times a corporate makes?
  • #597187
    Now a days big movies are produced with a different working pattern. The actors, musician and the dialogue writers are not paid anything but services are taken. However they enter into agreement on revenue sharing in percentage once the moves starts collecting at box office. This trend was started by Rajinikanth and that continued to big movies. Now the producers are spending on sets, daily expenses and other immediate expenses. The bigger game starts with movie getting windfall collections. So the producer and the director need not worry with tax problems as they can always reveal the expenses and the net amount they got as the final settlement. Moreover hype has been created through media and ads and even that expenses are shown with big margin and thus producers wont reveal real income.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #597208
    The simplest answer to your question is 'No'.

    To understand this you need to understand the concept of taxation. Income Tax is charged on the income and not on the revenue collection. For any profit oriented business including that of movie making, income is decided after allowing various deductions towards expenses. So when the box office collections are announced in the news media please just revenue collections. The income from such business he is arrived at considering the expenses the producers incur in the process of making that movie including the payment towards the star cast.

    So in simple terms collections less investment is the income on which the movie makers pay taxes.

    As far as giving back to the society, if the movie has some social message that is what they are giving back otherwise it's just entertainment for the society.

    - Manjunath Bhat

  • #597209
    I think nobody will declare actuals gains. More expenditures they show and decrease the profit and shares. In that pursuit they may be making some black money. We are not aware how much these people deposited in banks on others names during demonetization.

    There is a hype in announcing the collections also. Now a days because of this on line booking system all tickets sold should be recorded and they may pay all applicable taxes. Earlier days in villages, the owner used to stand at the gate and collect money. No ticket issue.

    Some of the senior artists now a days spending some money for village development by adopting the villages. Mr.Prakash raj and Mr.mahesh babu are examples for this.

    drrao
    always confident


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