The government is considering the long-pending demand of the DTH industry for rationalisation of tax structure for the sector which feels burdened by multiple taxes that amount to around 33 per cent of its revenue.
Direct-to-Home (DTH) operators feel that double taxation — service tax by the Centre and entertainment tax by various states — is unjustified and needs to be rationalised.
“We are aware of the issue. It is being discussed and it is now with the Ministry of Finance,” Information and Broadcasting Minister Prakash Javadekar told PTI.
The industry players are watching whether and when the government addresses their concern.
“We are paying around 12.36 per cent as service tax and 11 per cent as entertainment tax. Over 33 per cent of our revenue goes in taxation,” said Harit Nagpal, president of DTH Operators Association of India.
“Till GST is not rolled out, the industry should get abatement in paying service tax... We are ready to pay taxes but we should not be taxed by the central government and state government both,” said Mr. Nagpal, who is also CEO & managing director of TataSky.
The industry is also expecting the license fee to be rationalised.
Govt looking into tax rationalisation demand of DTH operators - The Hindu
Direct-to-Home (DTH) operators feel that double taxation — service tax by the Centre and entertainment tax by various states — is unjustified and needs to be rationalised.
“We are aware of the issue. It is being discussed and it is now with the Ministry of Finance,” Information and Broadcasting Minister Prakash Javadekar told PTI.
The industry players are watching whether and when the government addresses their concern.
“We are paying around 12.36 per cent as service tax and 11 per cent as entertainment tax. Over 33 per cent of our revenue goes in taxation,” said Harit Nagpal, president of DTH Operators Association of India.
“Till GST is not rolled out, the industry should get abatement in paying service tax... We are ready to pay taxes but we should not be taxed by the central government and state government both,” said Mr. Nagpal, who is also CEO & managing director of TataSky.
The industry is also expecting the license fee to be rationalised.
Govt looking into tax rationalisation demand of DTH operators - The Hindu
