TN govt to tax DTH, IPL

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NT Bureau | Wed, 14 Sep, 2011,01:18 PM
The Tamilnadu government today decided to slap entertainment tax on Direct- to- Home (DTH) service providers and Indian Premier League (IPL) cricket tourney being played in Chennai.

DTH services will be charged 30 per cent while IPL cricket will be slapped with 25 per cent entertainment tax. A Bill in this regard was introduced in the State Assembly today by State Commercial Tax and Registration Agri Krishnamurthy.

According to the Bill, the DTH service providers, who transmit private satellite channels directly to consumers' house in the State, will be imposed 30 per cent as entertainment tax on overall price, excluding the service tax.

Similarly, for the IPL matches, 25 per cent will be levied as entertainment tax on the total sum of cash including the tax amount paid, for getting permission to hold the T20 matches (as part of the IPL) in Chennai.

There are no specifications on imposing such taxes on DTH and IPL under the current Tamilnadu Entertainment Tax Act. However in many States in the country, the tax is slapped on IPL and DTH already, the Bill said.

It also states that amendments would be made to Tamilnadu Entertainment Tax 1939 to facilitate the implementation of the government's decision.

The Bill would be taken up for discussion later today and is expected to be passed in the Assembly immediately.

It may be recalled that the State government had rolled out Cable TV operations through Arasu Cable Corporation on 2 September in association with thousands of cable operators at affordable rates for the consumers. There is a general feeling that only well-to-do and rich people opt for DTH services.

The decision to impose 30 per cent entertainment tax on DTH service providers is expected to give a filip to the Arasu Cable Corporation's activities as the DTH consumers may have to end up paying more. When the same services are offered by the government at an affordable rate, patronage to Arasu Cable Corporation would be more, sources in the trade say.

Similarly, the government's decision to levy tax on the cash-rich IPL tournament is welcomed by many. 'Though it may dent the purse of cricket-lovers in the form of rise in ticket prices for the matches, it would end up generating more revenue for the State', it is said.
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