However, the media and entertainment industry received some good news, even as service tax was hiked from 10 per cent to 12 per cent. The latest budget places "admission to entertainment events or access to amusement facilities" in the negative list, which comprises of other services that are exempt from the service tax.

The Finance Bill defines an entertainment event as an event or a performance which is intended to provide recreation, pastime, fun or enjoyment, by way of exhibition of cinematographic film, circus, concerts, sporting event, pageants, award functions, dance, musical or theatrical performances including drama, ballets or any such event or programme.

Meanwhile, the film industry received a service tax exemption in connection with copyright relating to cinematography. However, copyright relating to sound recording will continue to be taxed.

On the advertising front, the cost of advertising through radio and television is expected to become a little more expensive with the hike in service tax. The selling of space or time slots for advertisements, other than advertisements broadcast by radio or television, have been exempted from the hiked service tax.