Courtesy : Collage by India Forums
Several Bollywood production houses are in trouble after the Income Tax department conducted a survey last week regarding the taxation on 'extras' in films.
Seven production companies including Karan Johar's Dharma Productions, Ekta Kapoor's Balaji Telefilms, Ritesh Sidwani-Farhan Akhtar owned Excel Entertainment, Vashu Bhagnani's Pooja Entertainment, Dinesh Vijan's Maddock Films, Luv Ranjan's Luv Films, and Ajay Rai's Jar Pictures have come under the IT department scanner.
There has been a discussion between the tax department and Bollywood production houses over the TDS charged on wages for extras or background actors in films, which producers have been charging at 2%, but, the limit set by the department has been 10%. The 10% TDS has been applicable for 4 decades now, however, it is not being followed.
Other issues are related to the TDS that needs to be charged on rentals and equipment hired.
Meanwhile, none of the production companies in question have commented on the same.