iWorld
Budget 2020 proposals offer few benefits to M&E industry: EY India
MUMBAI: As always, the industry's hopes from union budget 2020 were high. According to a report from EY India while the budget proposals offer few benefits to the industry, some of the changes may have a material impact which will need to be assessed.
“The budget proposals will provide relief to the foreign companies earning income such as license fees from making compliances in India, provide clarity and do away with avoidable tax litigation through reduction in withholding tax rate for technical fees as well as withholding tax provisions for e-commerce operators. New media and digital business qualifying under start up incentives will get additional impetus from the measures proposed. Reduction in newsprint import duties will help print industry which is going through a tough business cycle. Tax amnesty scheme for resolution of pending litigation offers an opportunity to reassess the tax game in the country,” the report adds.
The report states that the proposed alternate personal tax regime will be relevant to mass employment by the industry in its content production processes, however, it is difficult to determine whether the regime will provide a material differential cash surplus to the employed.
It also adds that expansion of domestic tax regime will lead to tax uncertainty for foreign companies with no resource to any credible advance ruling mechanism which will allow them to understand their tax position upfront.
“Removal of exclusion relating to theatrical receipts would certainly put pressure on the finances of the film businesses with a 10 per cent withholding tax rate and increase their compliance burden. The uncertainty attached to film business certainly makes a strong case for a rate much lower than applicable 10 per cent withholding tax rate. Increase in import duties will lead to increased cost for businesses,” it adds.
Key impacts:
· Withholding tax rate on “fees for technical services” reduced from 10 per cent to 2 per cent, reducing potential litigation on withholding tax rate on content production services and certain other services which do not qualify as “professional services”.
· Exclusion of consideration from “sale, distribution or exhibition of cinematographic films” removed from “royalty” definition that may make theatrical and other receipts from exploitation of cinematographic films taxable and subject to withholding tax at 10 per cent.
· Expansion of domestic source rule will bring to tax income of a nonresident from (i) advertisements targeted at a customer located in India
(ii) sale of data collected from a person in India and (iii) sale of goods or services using data of customer located in India.
· The list of services subject to Equalisation Levy provisions remain unchanged.
· Exemption provided to non-residents earning royalty and fees for technical services from the requirement of filing a return of income, subject to fulfilment of stated conditions.
· Relief provided d to the print industry by reduction in customs duty on newsprint and paper.
iWorld
Epic Company launches unified Epic Studio for films and OTT
Vivek Krishnani to head films business; Samar Khan leads OTT & Television.
MUMBAI: Epic just merged its creative superheroes under one cape because when films and OTT need to fight for attention together, you don’t keep them in separate universes. The Epic Company has launched Epic Studio, a next-generation creative and production powerhouse that unites Juggernaut Productions and Movieverse Studio under a single banner. The move creates a streamlined, scalable platform for premium storytelling across theatrical films, OTT originals, television, digital-first formats and branded content.
Vivek Krishnani has been appointed chief executive officer, Epic Studio (Films), overseeing the theatrical and film business with a focus on culturally resonant narratives across Hindi, Telugu, Tamil, Gujarati and Malayalam cinema. Samar Khan continues as chief executive officer, Epic Studio (OTT & Television) and retains his role as chief content officer for Docubay and Epic On.
The Epic Company managing director Aditya Pittie said, “Epic Studio brings together our entire creative ecosystem under one unified studio vision. This is not just an integration of verticals, but the creation of a collaborative environment where writers, filmmakers, creators, and brand partners can seamlessly develop and scale stories across formats and screens.”
Vivek Krishnani added, “We are building an audience-focused mainstream film studio committed to delivering fresh, engaging, and innovative stories for both theatrical and streaming platforms.”
Samar Khan commented, “This alignment allows us to approach storytelling with a unified studio mindset. We are building IP under one creative umbrella, with scale and longevity in mind from inception.”
The unified structure eliminates silos, enabling ideas to flow fluidly from concept to screen while adapting to evolving audience behaviour. Epic Studio positions itself as a creator-led ecosystem championing purposeful, resonant storytelling with commercial strength.
In an entertainment landscape where stories now leap between screens faster than plot twists, Epic isn’t just building a studio, it’s crafting a single launchpad where every tale gets the best shot at soaring across every platform.
