Special Correspondent

Outflow of Rs. 200 cr. to other States prompts the decision

HYDERABAD: The State Government here on Saturday decided to levy service tax on pay channels. The decision has been taken in view of outflow of Rs. 200 crores to other States through pay channels.

G. Adiseshagiri Rao, chairman, Andhra Pradesh Film, Television & Theatre Development Corporation, said it was also decided to entrust the responsibility of collecting the 5 per cent entertainment tax on cable television to the Commercial Taxes Department. He was speaking to reporters on Saturday after meeting Chief Minister Y.S. Rajasekhara Reddy to discuss issues related to the film industry. He said a housing colony for film industry employees would be constructed on a 12-acre site here through private-public partnership. Dr. Reddy cleared a proposal for a children's film society complex on a 10-acre land here.