Hindi
Budget: Film industry wants CVD exemption on raw stock
NEW DELHI: The film industry, which had heaved a sigh of relief when the countervailing duty for unexposed colour films was abolished in 2002, is once again battling for a similar status since it was re-introduced in 2004.
Although the raw stock is imported, the CVD was imposed over two decades earlier since the Hindustan Photo Films sliced the jumbo rolls into smaller ones.
“CVD should be done away with since it was introduced to protect domestic manufacturers while raw film is imported,” says Mukesh Bhatt.
Delegations of the film industry led by Film Federation of India President Jitendra Jain recently called on Finance Minister Pranab Mukherjee and Information and Broadcasting Minister Ambika Soni in separate meetings to press various demands relating to the budget, and said though unexposed negatives are not produced within the country, the industry has been paying CVD. Though this was removed in 2002, it was re-imposed in 2004 at the rate of 16 per cent.
While Soni told the delegation that she had already raised this issue with the Finance Minister, Mukherjee candidly told the delegation that he would listen to them patiently but could not make any commitment.
The industry is also seeking parity in taxation amongst all media, as it feels the government is encouraging new technologies by offering them tax concessions while ignoring the film industry which was the biggest foreign exchange earner and one of the largest employers in the country. Soni assured the industry that she has sought exemption from service tax to the film industry.
FFI Secretary General Supran Sen told indiantelevision.com that the industry was also seeking relief in Fringe Benefit Tax. The film industry has had to pay huge FBT in booking of hotels, travel and food even when traveling for professional work.
The government has also been requested to consider relief on remittances abroad under Section 195B of the Income Tax Act as these are for professional work or for hiring foreign technicians.
The industry wants advance tax and the interest levied under Section 234B and 234C to be made discretionary and not mandatory for the film industry as it often becomes difficult – particularly the months of December and January – since the profits from any film are subject to a high degree of uncertainty. .
Tax deducted at source for licensing of copyright varies between 10.3 to 11.33 per cent, which the film industry feels is very high particularly for regional cinema. The film delegation asked the Minister to consider regrouping TDS that is levied upon the industry.
Soni has supported the demand by the Ficci for a 10-year tax holiday for the emerging sectors such as gaming, animation and visual effects.
Hindi
New labour codes reshape rules for India’s media & entertainment sector
EY masterclass highlights unified framework, wage redefinition and expanded coverage.
MUMBAI: The new labour codes just rewrote the rulebook for India’s media and entertainment industry because when four old laws become four big codes, even the fine print needs a director’s cut. At the FICCI-EY Media & Entertainment Industry Report launch, EY partners Nirali Goradia and Lakshmi Ranganathan delivered a detailed masterclass on how the labour codes implemented in November 2025 are fundamentally changing the sector. The four consolidated codes Code on Wages, Code on Social Security, Industrial Relations Code, and Occupational Safety, Health and Working Conditions Code have replaced a fragmented set of central and state regulations that existed for decades.
The speakers explained that the new framework brings consistency across all types of establishments and workers. Previously, cine-workers, journalists and other media professionals were governed by separate, narrow laws. Now, definitions have been broadened: “audio-visual worker” now covers everyone involved in film, television, OTT, broadcasting and digital content creation, while “working journalist” extends to digital news platforms.
Key changes include:
- A uniform definition of wages, with at least 50% of total remuneration needing to qualify as wages for calculations like provident fund and gratuity.
- Expanded social security coverage for gig workers, platform workers and project-based freelancers.
- Unified working conditions, safety norms and leave entitlements.
- Simplified compliance through digital filings and a more principle-based approach.
Nirali Goradia emphasised that the codes aim to bring gig workers, freelancers and project-based talent under the social security net, though the exact contribution mechanism for platform workers is still being finalised. She noted that the intent is clear: no worker should be left out of basic protections such as provident fund, ESI, gratuity and safety standards simply because of the nature of their engagement.
Lakshmi Ranganathan highlighted that establishments in the sector must now carefully map their workforce—permanent employees, fixed-term contracts, freelancers and gig workers because different categories attract different obligations. She pointed out that gratuity vesting for journalists remains at three years, but the broader wage definition will impact calculations across the board. Organisations that previously computed contributions on basic salary (often 35-40%) will now need to move to at least 50% of total wages, potentially increasing costs by around 10% on a recurring basis. This change applies retrospectively for gratuity valuation as well, creating immediate balance-sheet implications for many companies.
The panel also discussed how the Occupational Safety, Health and Working Conditions Code has expanded the definition of “manufacturing process” to include digital printing and related activities. This brings more workers under safety and working-condition norms that were previously limited. Additionally, the codes introduce a clearer framework for fixed-term employment contracts, offering organisations flexibility while ensuring such workers receive benefits similar to permanent employees, including gratuity after one year.
One area still evolving is the treatment of platform and gig workers. The Social Security Code recognises this new category, but the exact funding mechanism and contribution structure are awaited. Industry experts expect a dedicated fund where platforms and employers will contribute, from which benefits can be extended to gig workers. Until the schemes are notified, organisations are advised to review their existing contractor and freelancer agreements to assess potential future obligations.
Both partners stressed the need for proactive steps. Companies should:
- Reclassify their workforce based on the new definitions of “employee” and “worker”.
- Review compensation structures to align with the 50 per cent wage threshold.
- Update contracts, especially for project-based and gig engagements.
- Reassess gratuity liabilities and payroll processes.
- Ensure compliance with expanded safety and working-condition requirements.
The speakers noted that while the codes bring much-needed unification and broader coverage, they also demand careful interpretation. The shift from highly prescriptive rules to a more principle-based regime means organisations must build internal frameworks to apply the codes consistently. This is particularly relevant for the media and entertainment sector, where project-based work, freelancers, short-term contracts and gig-style engagements are common.
In an industry that thrives on creativity and agility, the new labour codes are forcing a rewrite of the fine print. What was once a patchwork of rules is now a unified playbook and for media houses, the real plot twist will be how quickly they adapt to keep talent happy, costs manageable and stories flowing. The next few months, as states finalise their rules and schemes are notified, will be critical in determining exactly how this new framework reshapes hiring, compensation and workforce management across the sector.
