Service Tax - If lawyers and doctors can be taxed, why not film stars?

By Vijay Kumar

There is a strong public opinion that lawyers and doctors are going to be brought within the ambit of Service Tax. Even the departmental officer who features in our budget Column wants lawyers and doctors taxed along with beer manufacturers. But what has sent a chill down the Bollywoods, Mollywoods, Kollywoods and Tollywoods, is the rumour that the FM is seriously contemplating a Service Tax on Film Stars. That will certainly be more glamorous and make more economic sense than taxing brief-less barristers.

But assessing the stars would be a mind boggling exercise what with the new valuation concepts. Stars do get paid in ways and types more than one and the money value of the considerations for providing the service, will be matter for future disputes. All kinds of Audit parties, including the CAG variety can visit the stars and audit them.