Den, Hathway, Siticable and InCable have filed writ petitions against Entertainment Tax

[IndianMascot]

Entertainment tax has become a bothersome issue for both MSOs and LCOs. Right from the amount of tax levied to ownership of collection, state government mandates have got the two cable TV factions locking horns. While government regulations mandate MSOs to collect tax from the LCOs and submit it, the LCOs would rather take the onus on themselves.

Four Indian national MSOs - Den, Hathway, Siticable and InCable have filed separate writ petitions in the Delhi HC to challenge several aspects of the entertainment tax being imposed as well as the tax collecting authority’s stance towards the MSOs in the state of Delhi. The cases are all set to be heard today in a joint hearing.

While Hathway Cable & Datacom was put through an enquiry on its own premises, others have decided to legally protect themselves before something similar happens to them. Siticable claims that it has been fulfilling all duties effectively. An ex parte order was taken out against it for non compliance in April and May 2013 which Siticable had appealed against. When that didn’t go very far, it decided to lodge its writ petition seeking redressal and justice.



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[IndianMascot]

DEN, Hathway and InCable get interim relief on ent tax

The big four of Indian cable TV - DEN Networks, Hathway Cable and Datacom, InCable and Siti Cable - heaved a sigh of relief as 21 January ended. The reason: the Delhi High Court - which was hearing their appeal seeking to restrain the state government's entertainment tax authorities from taking any coercive action against them for not paying entertainment tax - gave them relief, if at least for some time. The HC passed an interim order, forbidding the tax folks from taking any steps against three of the MSOs - Den, Hathway and InCable.

The cases that were heard in one day saw the appeals of DEN and Hathway being joined together while InCable and Siti Cable presented its case separately. With the order coming into effect, MSOs have been relieved of the duty of collecting entertainment tax from the LCOs and submitting it to the government till the judgment on the case is passed. The next hearing will be on 13 March.


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