AP State Government Service tax officials visited some Tollywood production houses on Monday and reportedly reminded them to pay their service tax dues. The offices of top producers Allu Aravind, Dil Raju, and Bellamkonda Suresh were reportedly visited.

Many producers have received notices to pay up their service tax arrears but they have been protesting against the 10 per cent service tax on the film’s total budget, for which they intend to seek exemption from the government since the industry is in dire straits.

The producers are hoping that the Andhra Film Chamber of Commerce, will take up the matter with the government and get the additional burden waived.

If a film costs Rs.20 crore, the producer has to cough up around Rs.2 crore as service tax. This is unfair since Tollywood is already reeling under multiple taxes. Also, the producer shouldn’t really pay a service tax since he is not offering any service. The entertainment tax should be sufficient.