Film Production Incentives in India

Film production incentives in India

The Indian government now offers financial incentives to foreign film productions. The Film Production Assistance scheme provides financial assistance of up to 30% of the total cost of production in India. This includes expenses such as hiring local crew members, renting equipment, and other production-related costs.

Film-Fixer-in-India-Production-ServicesIndia’s film incentive for foreign productions is an excellent opportunity for filmmakers from around the world to explore the country’s rich cultural heritage and diverse landscapes.

How to claim the film incentive in India…

To apply for India’s 30% rebate financial incentive for foreign film productions, you need to follow these steps:

Register with the Film Facilitation Office (FFO): The FFO is a single-window clearance system that provides all necessary permissions and clearances for foreign film productions in India. You need to register with the FFO to be eligible for the incentive.

Submit your application: Once you have registered with the FFO, you need to submit your application for the incentive. The application should include details such as the name of the production, the budget, and the expected expenditure in India.

Get approval: After submitting your application, you will receive approval from the Indian government if your project meets the eligibility criteria.

Claim your rebate: Once you have completed your production in India, you can claim your rebate by submitting all necessary documents to the FFO.

Who qualifies for the film production incentive in India?…

To qualify for the film incentive your production must be an official Indian co-production which is a production, between India and one or more countries made under one of India’s official bi-lateral co-production treaties. The production must be granted official ‘Co-production Status’ by the Ministry of Information & Broadcasting.

For qualifying projects, the film production company can claim a payable cash incentive of up to 30% on Indian qualifying production expenses subject to a maximum of INR 20 million (USD 260,000). The reimbursement is divided among the Producers as per their share of the financial contribution to the co-production.

Qualifying Production Expense (QPE) is defined as the expenditure incurred by a foreign film production company in India on goods or services that are used or consumed wholly and exclusively in India for the purpose of making the film. The QPE includes expenses such as salaries paid to Indian crew members, payments made to Indian vendors for goods and services, and other expenses incurred in India.

Who can apply for the film incentive?…

Applications must be made by a Line Producer, or Production Service Company, based in India, in possession of a valid Permanent Account Number, as per the Indian Income Tax Act 1961. They should also hold a valid Goods and Services Tax Registration Certificate, under the Central and State Goods and Services Tax Act 2017. The applicant will be responsible for making all arrangements for purchasing, hiring and production related expenditure. The International Producer may claim reimbursement via their Line Producer or Line Production Services Company in India. Goa Film Services fulfils these requirements.

You can download the full detailed regulations here.