Taxmen to probe Dish TV accounts?

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Vivek Sinha , Hindustan Times New Delhi, August 23, 2011

Income tax officials could soon knock on the doors
of India’s largest DTH service provider Dish TV for
recovery of tax dues for the last fiscal year. Tax
officials feel the company by understating its tax
liability actually ended up paying less tax than
other DTH players with lesser number of subscribers. “For the fiscal year 2010-11, Dish TV should have
paid R150 crore as license fee but it has paid only
R39 crore,” a senior income tax official told
Hindustan Times on the condition of anonymity. License fee is the amount paid annually by a DTH
licensee company to the government. It is around
10% of the gross revenue earned in a fiscal year. “We are not aware about the license fees paid by
the other operators as that information is not in
public domain. We are paying the license fees
based on the prevailing regulatory position and as
such there is no anomaly at all,” said DishTV’s
spokesperson. “Entertainment tax is a state subject and the rate of
levy varies from state to state. The amount of
entertainment tax is a function of the number of
subscribers in any particular state and the average
subscription pay out by the subscribers in the said
state. We are fully compliant with all applicable statutory liability including entertainment tax,” he
said. During its scrutiny of account books of Dish TV, the I-T department found certain irregularities, the
official said. “We might conduct a survey under
section 133A of the Income Tax Act to verify
account books and any document lying in its
premises if the company does not come clean on its
accounts.” DishTV has a registered subscriber base of 11.3
million as of July 2011. The same stood at 10.4
million on March 31, 2011.
 
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