Cable TV Operators Under Tax Scanner

With the rolling out of set top box regime giving out better estimates of cable connections than what multiple-system operators (MSOs) running local networks had been reporting, the tax authorities are already knocking at operators' door. A survey was conducted at the premises of four MSOs operating in city-UCN, IN TV, BTN and GTPL.

According to data sourced by the taxmen before cable TV connections changed to set top boxes, the official number of connections stood at 1.46 lakh. However, the actual number stands at over 5 lakh as estimated from sale of set top boxes.The data were sourced from entertainment duty section of district collectorate. A count of the number of set top boxes sold could be had as the buyer has to submit copy of a photo identity proof at the time of purchasing it.

Chief commissioner of income tax D N Saxena confirmed the action. According preliminary estimates by income tax officials, these MSOs may have been under-reporting almost 70% of their income by not disclosing the actual number of connections. An income tax survey is an operation that can also be conducted by regular assessing circles of the department. As against this, the search and seizure operation which is more obtrusive action is carried out by the investigation wing.

In a survey the assets cannot be seized but the books can be impounded. The final assessment of tax liability is done after the officials carrying out the survey submit their report, a source said.

Source: http://cablequest.org/news/digitization-news/item/2232-cable-tv-operators-under-tax-scanner.htmlSource: http://cablequest.org/news/digitization-news/item/2232-cable-tv-operators-under-tax-scanner.html