The Karnataka Film Chamber of Commerce (KFCC) on Wednesday urged Chief Minister Yeddyurappa not to insist that Kannada film distributors compulsorily register and file returns, as it would adversely affect the industry.
Speaking to reporters after submitting a memorandum to the CM at Vidhana Soudha, KFCC President Jayamala said the Commercial Tax department had recently issued a notice to all distributors to register themselves and file returns every month. “We have informed the CM that this will affect the industry. The move has dealt a blow to the distributors, who are already making heavy losses,” she added.
If a distributor has to register and file returns every month, she/he has to open a full-fledged office to maintain accounts. Not many distributors can afford office maintenance as their profit margin has narrowed down of late, she explained.
When contacted, Commissioner for Commercial Taxes B A Harish Gowda said that Section 10(a) of the Karnataka Entertainment Tax Act (1958) has made it mandatory for all distributors to register and file returns every month. “We are only following the rule book. Many people are misusing the Act as distributors are not making registration. We just want to stop the misuse,” he said.
The KFCC has, therefore, urged the Government to amend the Act and leave out the section that makes it mandatory for registration.
Published 06 May 2009, 18:28 IST