Exemption from the Service tax is one of the long standing demands of Film industry. Film industries across the country have protested several times on this issue and finally all their efforts paid off. The Telugu Film Chamber of Commerce had thanked the government for this movie and saving the already burdened producers.
The Union Finance Minister P.Chidambaram had announced that the entire film industry will be exempted from paying the 12.36% Service tax to the government.The entire entertainment and amusement services industry has been placed in the negative list of sectors which are not required to pay the tax. Finance Minister also specifically stated that service tax would not be charged on film copyrights.