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The Madras High Court has stayed the Entertainment Tax levied on DTH services in the State.
The Tamil Nadu Government passed a Bill to levy 30 per cent Entertainment Tax on DTH operators, effective September 27, 2011. Contesting this, market leader Dish TV filed a petition in the Court saying such levy is discriminatory and in violation of Article 14 of the Constitution of India, as the cable network is exempt from such a levy.
According to a statement from Dish TV, the High Court announced the petition challenging the validity of the levy on DTH services was taken up for hearing by Justice Ms Chitra Venkatraman.
The order restrained the Department of Entertainment Tax from initiating any further proceedings — new or by way of the show-cause notice dated November 14 — and from recovering taxes. It directed Dish TV to furnish tax returns and deposit a security amount that equals half of the tax liability for a month in cash.
Welcoming this, Mr Jawahar Goel, Managing Director, Dish TV India, said, “We welcome the stay. Entertainment Tax is a burden on the common man for whom TV viewing is the cheapest form of entertainment and information.”
Mr Harit Nagpal, Managing Director, Tata Sky, the second-largest player, said the Entertainment Tax “is something we cannot accept as it is discriminatory, thereby denying a level-playing field for the cable and the DTH industry”.
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