Dish Tv writes to Finance Ministry to waive service tax till GST rollout Jan 15th, 2014 0 Comment Imb 13Direct-to-Home operator Dish TV has requested the government to waive 12.36 per cent service tax till the rollout of Goods and Services Tax (GST) and rationalise other taxes imposed on the industry. The Zee group firm has asked the government to waive the service tax till GST 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. “This has made a superior technology for television costlier and unaffordable to the common man, especially in comparison to the parallel mediums reaching to masses such as cable and cinema,” it said. 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. In addition, sale for equipment during new connections as set-top box, dish antennas are also subject to VAT. “No other service industry is taxed so heavily and there is apparent disparity amongst comparable mediums reaching to masses. For example, unlike DTH service providers, cable operators are not liable to pay any licence /entry level fee. This gives them upper hand over DTH service providers,” it said. It contended that even cinema, which is a comparable medium is also not so heavily burdened with double taxation. 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. “In order to bring the parity amongst parallel mediums, to make DTH technology reachable to masses as well as to boost the growth of DTH technology, it is crucial for the Government to rationalise taxes/license fee levied currently on DTH services,” it said.
Posted on: Thu, 16 Jan 2014 00:33:17 +0000