Originally posted by: UntamableSpirit
Wouldn't the tax be same all over India ---? I don't understand the thing about taxes -- how would that benefit movies outcome --?
In TamilNadu, if your film name is Tamil, there will be No tax for your film, means GROSS (Ticket Sold) will be your film's business, which isn't the same for other films all over india.
Different states have different Tax rates for films, South films have lesser % of tax in their state for their own regional films.
When a hindi film releases, GROSS income comes, means Ticket sold, then some tax is imposed on them and we get NETT. You can see the impact of Tax when u see Sultan vs Bajrangi Bhaijaan Gross business. Both had 422 & 420 cr Gross business, but NETT is 15 Cr difference, which means More tax was imposed on Sultan this year than compared to BB.
Next year, this different rate of tax in all states will be shelved, & only 1 tax will be applicable all over india & on everything.
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