| MUMBAI:
Riding high on technological changes, the music industry and its affiliates in
India are not seeking much intervention from the finance minister this time round,
except for better enforcement of laws. The
Indian Music Industry (IMI), the body that looks after the interests of most of
the music companies in the country, says that there is not much it expects from
the Union Budget. But the Phonographic Performances Limited (PPL), the licencing
arm of the IMI, is looking at some concrete intervention. PPL
CEO Vipul Pradhan believes there should be a provision in the budget to reduce
the VAT on cassettes. He says, "We are hoping the government reduces the
VAT on cassettes, which is 12 per cent currently. The VAT applicable on CDs is
four per cent which makes it more feasible for the people to opt for CDs instead
of the audio cassettes. Reducing the VAT on cassettes also at four per cent will
help in their sales." "Also,
the government has to undertake some kind of initiative for
protection of
intellectual property and rights. The growth of a country is determined by and
large by the sale of computer and entertainment software and piracy is killing
the industry. So, it is necessary to form a separate body to protect the intellectual
property and also funding is required to educate the common masses about the ill
effects of piracy," adds Pradhan. The
governing body for the music industry down south, Simca, too is not looking for
drastic changes, but a stricter adherence to prevailing laws. Simca general secretary
SL Saha says, "There are no budgetary or fiscal requirements that I expect
in the budget but proper enforcement of the prevailing acts to promote the industry."
PDM
Entertainment COO Aman Anand, who recently organised the Sunburn Music Festival
in Goa, wants a lowering of entertainment tax in the budget. Mobile
content company DNS Networks is looking at tax benefits for producers and film
making companies, to enable good production values in films, which in turn help
mobile content get marketed profitably throughout the world. "Mobile content
based on movies, including music, will get an indirect but big boost if filmmaking
corporate houses can avail of these tax benefits," says DNA Networks' MD
Devashish Mishra. The
Internet and Mobile Association of India's wishlist for the Union Budget recommends
that the nascent e-commerce industry in the country be encouraged by the removal
of service tax on online internet transactions done through credit cards, debit
cards and net banking transactions, a move that might help the online music stores
that have been started by some music companies and content aggregators in the
country. The
IAMAI has also recommended that the state governments be directed not to impose
entertainment tax on internet and broadband services. People
Infocom CEO Manoj Dawane says, "The Indian Mobile VAS Industry is on a growth
path, and the times ahead promise opportunities that will need to be capitalized
on and avenues that will have to be chartered. Given the existing scenario, we
hope for a Budget that provides our space the support to make the most of the
opportunities presented.
"Telecom and media are two of the most important interrelated industries
for the MVAS space. Considering both these sectors, we would look forward to the
implementation of a single levy system for the telecom sector making telecom services
more affordable. We would also look forward to some relief in the Fringe Benefit
Tax (FBT)."
"It would be favorable for service tax regulations
to be kept simple, which will result in increased compliance and greater tax collections,
along with making Tax filings and administration simpler and taxpayer friendly,"
adds Dawane. | 
