The association, which is a body of directors of cinema and television, said it has "no place for goons, rapists and killers".
"We strongly felt that after Ram Rahim was convicted..., he has no place in our dignified organisation," IFTDA convener Ashoke Pandit told PTI.
"We stand by the emotions of victims and the judiciary, and hence, terminated his membership. He will not be allowed to work in our industry," he said.
The 'rockstar baba' has made five films, all of which feature him in the lead role.
Ram Rahim was found guilty of rape of two of his followers, a case that stemmed from an anonymous written complaint in April 2002 that he had sexually exploited them.
The case was registered by the CBI in December 2002 on the directions of the Punjab and Haryana High Court.