NEW DELHI: A permanent parliamentary committee in its report on the entertainment sector recommended that a mechanism be put in place to combat cases of tax evasion.
“A mechanism should be put in place for continuous review of possible sources of revenue generated in the sector and updating the system to keep pace with contemporary developments taking place in the entertainment sector,” the recently filed report states. in Parliament.
In its report, the Committee highlighted the need to refine the electronic systems, coupled with efforts to streamline the commercial codes used for ITR forms, improve the information sharing mechanism and strengthen the monitoring mechanism.
The Committee appreciated the initiatives taken by the Ministry of Finance, such as the faceless assessment system, the implementation of a monitoring system for non-filers, the launch of a “project overview” to strengthen the non-intrusive information driven approach to increase tax compliance and allow Aadhaar number to be used interchangeably in place of PAN in over 100 forms.
In its report, the Committee noted that there has been phenomenal growth in the entertainment sector in the form of new segments such as short video platforms, digital streaming services, OTT, animation, effects visuals, podcasts, audiobooks, and mobile and video games alongside other existing subsectors such as television, print, film, sports, radio, and music, etc.
“However, the dynamic nature of the industry poses the challenge of maintaining a balance in the growth of new sectors, i.e. ensuring that tax revenues are improved accordingly with increasing sources of income” , says the report.
The Committee also seeks to testify to the effectiveness of the ITBA in improving transparency and accountability for better implementation of the Income Tax Act and improving the scope of authorities to better target evolving areas of the entertainment industry,” the report states.