Monday, 28 November 2011

DTH: Madras HC stay on levy of entertainment tax

Tamil Nadu state government's decision of imposing a 30 per cent entertainment tax on the DTH services in the State has been stayed by Madras High Court, while hearing the petition of Dish TV challenging the state government move.
The Tamil Nadu Government had passed a Bill in September, this year, to levy 30 per cent entertainment tax effective 27 September. However, the leading DTH operator Dish TV had filed a petition in the High Court contesting the decision.

Dish TV had said that the government's decision is discriminatory and in violation of Article 14 of the Constitution of India, as the cable network is exempt from such a levy.
The petition was taken up for hearing by Justice Chitra Venkatraman.
The order restrained the Department of Entertainment Tax from initiating any further proceedings - new or by way of the show-cause notice dated 14 November - and from recovering taxes. It directed Dish TV to furnish tax returns and deposit a security amount that equals half of the tax liability for a month in cash.
Dish TV MD Jawahar Goel said, "We welcome the stay. Entertainment tax is a burden on the common man for whom TV viewing is the cheapest form of entertainment and information."


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