As per a new rule by the Government, All Bollywood and Television actors will be charged 12% service tax on their earnings from acting assignments and endorsements. This will be in addition to their income tax obligations.

Effective July 1, the government has embraced new taxation of services by introducing a negative list. Included under the ambit of the new 12 per cent tax are companies that provide tailors, cooks, and private tutors, along with individuals who work on a contract or non-salaried basis, like freelance journalists. However, if an individual or a firm has an annual income of less than Rs 10 lakh, the service provider can avail exemption and shall not be obliged to pay any tax.

Needless to say this new rule has not gone down too well with members of the TV fraternity.

Voice of TV Industry – TV business is a very volatile profession and this sentiment is echoed by many actors of television industry. As not many actors can leave their mark in this cut throat competition and finds it difficult to make ends meet. It is only unfair to have them pay an additional tax of 12 percent. Our sources inform us that actors have decided to bookmark 5th July 2012 as ‘ Strike against Service tax’ and will not report to work.

Although the government and analysts voices that his is a major reform, one that could generate up to $4.9bn in revenue annually, and is a big first step toward a much-needed universal goods and service tax. Since 1994 (India first began taxing services.), most corporate services have come under taxation, but the newly-implemented reform will bring even more sectors under the tax umbrella, which will help to even out the unequal tax burden between manufacturing and services.

A simple conclusion while the actors pays the price of service tax regime that went into effect on Sunday in India, their fan following can breathe a easy sigh of hope of lesser service tax.

But even if the stars had to pay the service tax as decreed, here’s a sneak preview what the top guns would have to pay:

The Tax Files (All figures in approx.)

Actors	Acting Fee	Service Tax
Salman Khan	27 cr	3.37cr
Akshay Kumar	25cr	3.09cr
Shah Rukh	20cr	2.47cr
Aamir Khan	20cr	2.47cr
Hrithik Roshan	20cr	2.47cr
Ajay Devgun	15cr	1.85cr
Ranbir Kapoor	10cr	1.24cr

No points for guessing the Twitter hot trend today… as the whole T.V and Film fraternity is fuming with the news. While some keep it rebellious like Divya Dutta

“Imposing additional service tax on actors is the most ridiculous decision ever taken! ‘They’ have no idea how some of the actors survive in this tough terrain of our profession. We are as much employed professionals as any in any field. I strongly appeal to every one of our faculty to stand ‘tall’ against the implementation of such injustice. Please spread the word.”

Karan Kundra was equally vocal and expressed his displeasure:

“I don’t support the service tax because on a daily basis I work with so many new actors who find it hard to make ends meet in this city. Payments from production house comes 75-90days from day of telecast and then there is competition. People are getting low ‘per days’ and on top of that cheque will come with a 12.5 percent deduction. It might not affect the top actors but think about the entire TV population. Look at politicians driving around in cars worth crores and their sons drive sport cars and flaunt the security. How about imposing double tax on them? Why trouble the general public?”

Some state it in a funny tone, Farah Khan “And just as i have turned ‘actress’ the governemnt has decided to also charge 12.5% service tax to all actors! This is tooo much.kitna nichodogey yaar?”

Arshad Warsi also seemed unhappy with the new rule when he tweeted, “With this service tax, there will be some more jobless actors… Blame it on the tax. Very soon all Actors payment will go directly to the Govt n they will start giving us the little percent that is left for us as salary.”

One of the best comments was by Rakhi Sawant in a Daily Newspaper -We are not SRK or Aamir Khan, who are earning in crores. Despite working so hard, we have no savings because there are so many overheads and EMIs to be paid. Now the government is forcing us to tread the wrong path! Should we loot the banks? After farmers, stars will now commit suicide!

Well we will keep you posted about the 5th of July strike, for now keeping our fingers crossed for all actors under the scrutiny of service tax. Hope they keep their strength in this hard time or should we wait for Peepli Live Part II.