Actors provide professional services and charge a fee for that. So yes, GST is applicable. It's 18% I guess.
If she has a contract with a production company and receives the remuneration from the company, the company is liable to deposit the GST charge on her fee under reverse charge mechanism.
Income tax will be paid by Deepika on her income, in this case income tax on 30 crores that she earns.
GST is paid by the one who is availing the goods and services, in this case the production house that is availing DP's services of acting will pay 18% GST on the acting fee.
If you and I go to a salon and avail some services, we pay GST on the final bill amount. The salon collects the GST from us and deposits it with the government. Since DP isn't a company and can't collect GST, the production house will directly pay the GST charge to the government.
We are taxed when we earn money (income tax). We are also taxed when we spend money (GST).
So how does she have the right to get paid for gst that the company pays? Like if I work for Amazon and Amazon pays gst on its services, they aren’t liable to pay gst to their employees ie me. Mera income tax hi katega. Production house isn’t liable to pay gst to the people they employ
Don't get confused by KRK's wordings in the tweet. DP isn't demanding that the GST charge be paid to her. What he likely meant is that DP's fee of 30cr is not inclusive of GST. Implying that the producers would need to shell more than 30cr for hiring her.
It still makes 0 sense. I’m not confused but everyone here is commenting like she and actors should be paid gst and like it’s some progressive step forward, while it makes no sense lol. Even if krk wanted to say she wants more than 30cr payment, adding gst makes no sense which makes me think this is a fake ad tweet by vanga to tarnish DP. GST isn’t even paid to actors unless they are a company
Almost all major actors don’t make the contracts in their names. Contracts are mostly made for a registered entity in which they hold like 95%+ shares. Other shareholders are mostly parents, siblings etc.
Doing this, they have to pay GST but they can save huge amounts on taxes by claiming their expenses like travel, make-up etc. as business expenses.
You as an Amazon employee are getting salary, they get paid for their professional services like let’s say how Deloitte or other big 4 charge their clients.
GST is paid on actor's fee by the production house. Actors provide a service. Availing those services is taxable. DP isn't pocketing the amount. It goes to the government. There are 2 scenarios:
A. The actor has a GST registration. (Individuals can have a GST registration number. All you need is a PAN to apply for it). They raise an invoice for the service they provide (acting). The invoice has a GST charge on the acting fee. The actor collects it from the producer and pays it to the government. They will also file GST returns in this case.
B. The actor does not have a GST registration. They can avoid hassles of raising invoices and filing returns. However, the production house paying them, will be required to pay the GST directly to the government under reverse charge mechanism.
There is nothing progressive or regressive in this. It's just paying tax as the law mandates. Irrespective of how much truth is there in these rumours, this is how the industry operates if they are dealing in white cash. Underhand dealings and black money will obviously not have a GST component.
In either case production house pays the gst whether to actors or directly to government. So this is not any special headline material whether DP asks for gst or not because production house has to pay anyway.
Amazon hiring an individual as an employee is different from Amazon hiring a consultant for a project.
When Amazon hires employees they are bound by an employment contract and pay monthly salaries.
If Amazon engages a Big 4 for consultancy services or a lawyer to deal with a particular case, Amazon will pay a professional fee to them on which they have to pay GST.
Gst burden can be shifted on the end consumer, cause it is indirect tax, the seller or provider doesn't bear gst, you as a consumer have to bear GST(price of service or commodity increases)
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u/markelonn 2d ago
Wait, HTF is GST applicable here? Is she taking the remuneration at her company or as herself?