Waive service tax till GST rollout: Dish TV

14 Direct-to-Home operators Dish TV has requested the government to waive 12.36 per cent service tax till the rollout of GST and rationalise other taxes imposed on the industry.

The Zee group firm has asked the government to waive the service tax till Goods and Services Tax (GST) regime is implemented as the industry is paying double taxation to central government and state governments.

Dish TV in a letter to the Finance Ministry has said that the DTH industry is taxed heavily and there is disparity with rival local cable delivery systems, which have to pay less taxes and this gives them an upper hand. These taxes are “causing hindrance to survival and growth of the DTH industry,” it said.

“We seek your immediate attention on the subject matter and request your good self to issue notification granting exemption from service tax to DTH services provided in India till the time GST is implemented,” the firm said.

According to Dish TV, at present the DTH industry has to pay multiple tax levies up to 50 per cent tax, while their rival local cable operator has to pay only 32 per cent.

The DTH industry is paying entertainment tax ranging from 10 per cent to 45 per cent to various state governments, while service tax of 12.36 per cent on its subscription revenue to the central government.

In addition to that, the DTH industry is also paying 10 per cent of their gross subscription revenue as their licence fee to the Union government.

Moreover, sale for equipment during new connections as set-top box, dish antennas are also subject to VAT.

The DTH operator has requested the government to “bring the parity amongst parallel mediums” of TV channel delivery so that there is a healthy competition in the sector.

“Every year before the budget, the ministry asks all industries to send in their suggestions. We wrote to them about a month ago and this was one of our suggestions that we have been putting forth since nearly six or seven years,” says Dish TV CEO R C Venkateish.

Source: http://cablequest.org/news/dth-news/item/4057-waive-service-tax-till-gst-rollout-dish-tv.html