Dileep Kumar
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Currently, the DTH operators pay the central govt 10% (of annual revenue) in the form of licence fee and 12.3% as service tax
With the change in mantle at the Ministry of Information and Broadcasting, direct-to-home operators in India hope they will finally get some respite from the multi-layer taxation that they are subject to as of now. On behalf of the six private DTH players, Dish TV has appealed to the finance minister Arun Jaitley and I&B minister Prakash Javadekar seeking an audience to discuss the issue.
In the past too, the industry has pointed out the burden it faces due to the multi-layer taxation. Currently, the DTH operators pay the central government 10% (of annual revenue) in the form of licence fee and 12.3% as service tax. Additionally, they pay the individual state government's entertainment tax, as prescribed by them.
"In some states, like Uttar Pradesh, the entertainment tax is as much as 33%. On a pan-India level, each private DTH player pays roughly 9% in entertainment tax. Adding this to the license fee and service tax wepay, the total comes to nearly 32%, which is very high,"said R C Venkateish, CEO, Dish TV India.
He adds that DTH has brough ttransparency and tax revenues to the government which was impossibleto as certain and collect in the old analog regime. Dish TV, along with other members of the DTH Association of India have appealed to the ministries and will be meeting the respective ministers this week.
"The DTH players have collectively invested nearly Rs 2,500 crore towards stablishing systems and backend for the industry and the multi-layered tax burden in preventing anyone of the six operators from making any profits," said. Venkateish.
"Dish TV is taking the lead to appealto the Honorable Finance Minister to provide relief from the twin burden of entertainment tax and and service tax. It appeals to allow abatement in service tax to the extent of entertainment tax paid or 60% of service tax whichever is lower. The flawed taxation structure of this industry has encumbered the growth of thisotherwise promising industry," he adds.
Currently, there are seven DTH serviceproviders in the country of which, six are private including Dish TV,Airtel DTH, Videocon d2h, Tata Sky, Relaince Digital TV and SunDirect. The seventh player is DD Direct, part of state run Doordarshan.Last year, the Telecom Regulatory Authority of India (TRAI) has come out with a recommendation that the licence fess charged to DTH operators should be reduced from 10% to 8% of annual revenues. However, no step has been taken towards this. "We will take this up with the I&B minister as well. We are not using a public spectrum and still are expected topay such high license fees," said an executive from another DTH operator on the condition of anonymity.
The industry is hopeful that these considerations will be included by the ministries in the upcoming budget and the tax burden will be lowered. Business Standard
With the change in mantle at the Ministry of Information and Broadcasting, direct-to-home operators in India hope they will finally get some respite from the multi-layer taxation that they are subject to as of now. On behalf of the six private DTH players, Dish TV has appealed to the finance minister Arun Jaitley and I&B minister Prakash Javadekar seeking an audience to discuss the issue.
In the past too, the industry has pointed out the burden it faces due to the multi-layer taxation. Currently, the DTH operators pay the central government 10% (of annual revenue) in the form of licence fee and 12.3% as service tax. Additionally, they pay the individual state government's entertainment tax, as prescribed by them.
"In some states, like Uttar Pradesh, the entertainment tax is as much as 33%. On a pan-India level, each private DTH player pays roughly 9% in entertainment tax. Adding this to the license fee and service tax wepay, the total comes to nearly 32%, which is very high,"said R C Venkateish, CEO, Dish TV India.
He adds that DTH has brough ttransparency and tax revenues to the government which was impossibleto as certain and collect in the old analog regime. Dish TV, along with other members of the DTH Association of India have appealed to the ministries and will be meeting the respective ministers this week.
"The DTH players have collectively invested nearly Rs 2,500 crore towards stablishing systems and backend for the industry and the multi-layered tax burden in preventing anyone of the six operators from making any profits," said. Venkateish.
"Dish TV is taking the lead to appealto the Honorable Finance Minister to provide relief from the twin burden of entertainment tax and and service tax. It appeals to allow abatement in service tax to the extent of entertainment tax paid or 60% of service tax whichever is lower. The flawed taxation structure of this industry has encumbered the growth of thisotherwise promising industry," he adds.
Currently, there are seven DTH serviceproviders in the country of which, six are private including Dish TV,Airtel DTH, Videocon d2h, Tata Sky, Relaince Digital TV and SunDirect. The seventh player is DD Direct, part of state run Doordarshan.Last year, the Telecom Regulatory Authority of India (TRAI) has come out with a recommendation that the licence fess charged to DTH operators should be reduced from 10% to 8% of annual revenues. However, no step has been taken towards this. "We will take this up with the I&B minister as well. We are not using a public spectrum and still are expected topay such high license fees," said an executive from another DTH operator on the condition of anonymity.
The industry is hopeful that these considerations will be included by the ministries in the upcoming budget and the tax burden will be lowered. Business Standard
