Service tax of 12.36 per cent has been imposed on the taxable services provided by the Film Artists. 

As a preparation for the introduction of a nationwide comprehensive Goods and Service Tax (GST), comprehensive approach to taxation of services has been brought into effect from the 1st day of July, 2012. Under the new approach, service tax is levied on all taxable services, which meet the definition of ‘service’, provided in section 65B (44) of the Finance Act, 1994, other than those services described in the negative list and exempt list. Service Tax is levied on an activity whereas income tax is levied on an activity whereas income tax is levied on the cumulative income earned by a person during a specific period. Service tax being a consumption tax, incidence is on the service receiver. The service provider, by default, is bound to collect the service tax from the service receiver in accordance with the law and pay the same to the Government. 

A general exemption is available for low-value service providers, up to an aggregate value of ten lakh rupees in a financial year, to address such persons. 

This was stated by the Minister of State for Finance, Shri S.S. Palanimanickam in written reply to a question in the Rajya Sabha today.