Film Incentive Scheme
India, with its rich cultural tapestry and different landscapes, becomes an appealing location for foreign filmmakers and innovators. Recognising the great potential of the Indian film industry, the government of India has implemented financial incentives to entice foreign films to film in India. These incentives are intended to encourage collaboration, enhance local economies, and highlight India's cultural and scenic richness to worldwide audiences. As the demand for high-quality digital content continues to rise, the AVGC industry is set to play a pivotal role as well in shaping the future of entertainment and media.
Large financial incentives are available to foreign productions that are authorised to film in India on or after April 1, 2022, by the Ministry of Information & Broadcasting (for feature films) or the Ministry of External Affairs (for documentaries). Employing Indian labour and integrating Significant Indian Content (SIC) might earn you extra incentives. These incentives are intended to refund up to 40% of Qualifying Production Expenditure (QPE) incurred within India.
1. Reimbursement: Up to 30% of QPE spent in India.
2. Labor Bonus: Additional 5% of QPE for employing 15% or more Indian manpower.
3. Significant Indian Content (SIC) Bonus: Extra 5% of QPE for productions showcasing Significant Indian Content.
- Applicant Profile: International Producers must apply through an Indian Line Producer or Line Production Services Company, holding valid PAN and GST registration.
- Production Types: Eligible formats include feature films, TV shows/series, web shows, animation series, and documentaries (with no minimum QPE).
- Funding: The production's primary financiers must be based outside India.
- Interim Approval: Applied before filming starts, evaluated within 20 working days of submission, granting a certificate valid for up to 24 months for larger projects.
- Final Approval: Applied within 90 days of project completion, including an audited expenditure statement and other required documents for disbursement.
- Initial disbursement of 90% of eligible incentives upon successful audit.
- Final 10% disbursed upon submission of final credits with "Filmed in India" and public release confirmation.
Indian Post Production, Visual Effects, and Animation (PPA) services for international productions are eligible for incentives up to INR 30 Crore. These incentives include a 30% reimbursement of QPE in India, with an additional 5% for Significant Indian Content.
- Services undertaken after April 1, 2022, with prior/interim approval.
- QPE requirements of INR 10 Million for animation, post-production, and visual effects services.
- Similar to live shoots, requiring interim and final approval stages with specific documentation and audited statements.
With years of experience and a deep understanding of India's regulatory landscape, Interlink Capital is your trusted partner in realizing the full potential of filming incentives in India. Our proactive approach and client-centric solutions ensure a smooth and successful production experience, maximizing your project's economic benefits and cultural exchange goals.
1. We help you determine if your project meets the eligibility criteria for incentives, ensuring all necessary documents and agreements are in place.
2. From initial application to final approval, we manage the entire process efficiently, ensuring compliance with all regulatory requirements and timelines.
3. Our team provides meticulous financial planning to maximize your incentive benefits while ensuring adherence to local tax laws and regulations.
4. We assist in preparing and reviewing audited expenditure statements and other required documentation, facilitating smooth approval and disbursement processes.
5. Benefit from our strategic insights to optimize your production budget and maximize the incentives available, enhancing your overall project profitability.