DTH free from entertainment tax

The Supreme Court last week held that the Madhya Pradesh government cannot demand entertainment tax on DTH services provided to customers of Tata Sky under the state Entertainment Duty and Advertisements Tax Act. The revenue department had demanded 20 per cent entertainment duty on subscription payment from the telecasters. They had moved the high court, but it had dismissed all of them, upholding the demand of the revenue authorities. Allowing the appeal of the company in the case, Tata Sky vs State of MP, the judgment stated that the Act cannot be extended to cover DTH operations. The state law imposes duty only if an entertainment takes place in a specified place or location and persons are admitted there on payment of a charge to the proprietor providing the entertainment. In the case of DTH, the operation is not a place-related entertainment. Therefore, the law is not applicable to DTH.


Source: http://cablequest.org/news/dth-news/item/2241-dth-free-from-entertainment-tax.html
Source: http://cablequest.org/news/dth-news/item/2241-dth-free-from-entertainment-tax.html