In a recent report, the IT Department suspected some leading production houses of the industry for not levying enough tax while paying the extras.
According to the report the department has also conducted a survey on seven production houses last week. The list also includes Karan Johar’s Dharma Productions, Ritesh Sidhwani, and Farhan Akthar’s Excel Entertainment, Dinesh Vijan’s Maddock Films and Ekta Kapoor’s Balaji Telefilms.
Extras are unskilled hands in Bollywoood, for decades, film producers have been deducting 2% tax — or, ‘tax deducted at source’ (TDS) — before paying extras. However, since the extras have a brief appearance on screen they are ‘skilled’ people – for whom a higher TDS of 10% should be applied.
While according to a report an official confirms raid, however, it did not share details.
A daily quoted a person, “Where is the need for a survey? The department can carry out an open investigation by asking the respective parties to appear in the tax office. It boils down to harassment.”
“The TDS rates for extras have been 2% for almost 4 decades. These hands are come via labor contractors and can hardly be called skilled artists. The TDS applicable for stars and other regular actors is 10% and there is not much of a dispute on that,” daily quoted another person.
However, no official design has been taken yet.