Now, MSOs to collect entertainment tax in Maharashtra

Cable operators in Maharashtra have been fighting tooth and nail to reduce the Rs 45 entertainment tax (ET) levied on them by the state government but nothing seems to be working. Now, in a fresh move, the state cabinet has approved an amendment which makes the multi-system operators (MSOs) responsible for the collection of ET from the Last Mile Owners (LMOs).

MSOs and LMOs are all wondering whether this amendment will come into effect or will it be regarded as as contempt of court, since the High Court's stay order is in place. As of now, no notification or communication has been issued to the parties involved. “We can only comment after the notification is passed. But we wonder what will happen since the matter is sub judice and the LMOs are stating that it is their business to deposit the tax,” says Hathway president Milind Karnik.

Ravi Mansukhani, MD, Indusind Media said, "The case is pending in several courts." But he adds that he is  "absolutely fine if the LMOs want to do it. It will be difficult for us to reach out to subscribers the way they do. The reason why the government has taken this step is because it is easier to collect it from a few MSOs rather than so many LMOs"

However, the operators are still protesting against the high ET rate and want it to be reduced. “The amendment is not bothering us much, but what is important is the high rate of entertainment tax that needs to be brought down,” said Cable Operators and Distributors Association (CODA) president Anil Parab.

Atul Saraf, CMD, ABS Seven Star MSO, said that he is fine with collecting ET from the LMOs. “But the amount needs to be reduced to just Rs 10 to Rs 15 so that the customer isn’t burdened with the extra cost,” he added.

Source: http://cablequest.org/news/digitization-news/item/4075-now,-msos-to-collect-entertainment-tax-in-maharashtra.html
Source: http://cablequest.org/news/digitization-news/item/4075-now,-msos-to-collect-entertainment-tax-in-maharashtra.html