Tata Sky & Airtel not paying entertainment tax to the Govt.
Wrong Practise by Tata Sky and Airtel.
DTH: Excise penalty slapped on Tata, Airtel
Three months after the government amended the Delhi Entertainment and Betting tax to levy entertainment tax on direct-to-home (DTH) television services, two major players — Tata Sky and Bharti Airtel — are not paying the government its dues. Tata Sky has even challenged the amendment in the High Court.
In notices sent to both service providers on Tuesday, the Excise department has now slapped a penalty of 25 per cent of the total tax due. Tata Sky has been asked to pay Rs 1.5 crore, while Bharti Airtel has to pay Rs 18 lakh.
If the firms continue to ignore the notice from the Excise department, there is also a provision to stop the service entirely. “Our DM recovery can evenseize their equipment and seal their functioning,” a senior official said.
The Delhi government had cleared the amendment in the Entertainment and Betting Act last year to include the provision of levying entertainment tax on DTH connections. According to the amendment, Rs 20 is charged on all connections. For those with commercial connections like Hotels and restaurants, the bar is higher at Rs 50 per month. Till now, only cable TV owners were paying the entertainment tax.
Delhi has six players in DTH market. Tata Sky has the highest number of connections in Delhi, at over 3 lakh. Bharati Airtel has 71,000 connections.
Tension over tax After amendment
* Rs 20 is charged on all DTH connections
* Rs 50 for commercial connections
* Delhi set to earn over Rs 1 crore per month from entertainment tax
fine on DTH players
* Tata Sky — Rs 1.5 crore
* Bharti Airtel — Rs 18 lakh
DTH: Excise penalty slapped on Tata, Airtel
Wrong Practise by Tata Sky and Airtel.
DTH: Excise penalty slapped on Tata, Airtel
Three months after the government amended the Delhi Entertainment and Betting tax to levy entertainment tax on direct-to-home (DTH) television services, two major players — Tata Sky and Bharti Airtel — are not paying the government its dues. Tata Sky has even challenged the amendment in the High Court.
In notices sent to both service providers on Tuesday, the Excise department has now slapped a penalty of 25 per cent of the total tax due. Tata Sky has been asked to pay Rs 1.5 crore, while Bharti Airtel has to pay Rs 18 lakh.
If the firms continue to ignore the notice from the Excise department, there is also a provision to stop the service entirely. “Our DM recovery can evenseize their equipment and seal their functioning,” a senior official said.
The Delhi government had cleared the amendment in the Entertainment and Betting Act last year to include the provision of levying entertainment tax on DTH connections. According to the amendment, Rs 20 is charged on all connections. For those with commercial connections like Hotels and restaurants, the bar is higher at Rs 50 per month. Till now, only cable TV owners were paying the entertainment tax.
Delhi has six players in DTH market. Tata Sky has the highest number of connections in Delhi, at over 3 lakh. Bharati Airtel has 71,000 connections.
Tension over tax After amendment
* Rs 20 is charged on all DTH connections
* Rs 50 for commercial connections
* Delhi set to earn over Rs 1 crore per month from entertainment tax
fine on DTH players
* Tata Sky — Rs 1.5 crore
* Bharti Airtel — Rs 18 lakh
DTH: Excise penalty slapped on Tata, Airtel