In future, Tollywood producers will have to think twice before making tall claims about the number of prints they will be releasing of their movies because the tax-men will be keeping a close eye on them.

Recent flicks like Dhookudu and Ooseravelli have caught the attention of the commercial taxes department, which has intensified collection of VAT applied on transfer of the ‘right to exhibit’ films from the producers to others.

The department also enforced the mandatory Tax Deduction at Source (TDS), and directed the film processing labs to collect taxes according to the stipulated slab.

According to the publicity blitz launched by the producers of Dhookudu, more than 1,000 prints of the Mahesh Babu-starer were released. This means the makers own Rs 4crore in taxes to the CTD. Jr NTR’s Ooseravelliand Pavan Kalyan’s Komarampuli may meet with the same tax fate.

“We are issuing notices to the producers to pay the tax according to the number of prints they claim to distribute,” CTD deputy commissioner , Ms Usha Rani said.

Recently, the CTD had asked the producers to either pay five per cent tax on the actual amount for which the distribution rights are sold, or follow the composite tax structure.

According to the composite structure, films with 36 prints, or less, must pay Rs 10,000 per print; 36-100 prints will attract Rs 20,000 per print; 101-150 prints will attract Rs 30,000 per print and 151 prints and above will be taxed at Rs 40,000 per print.