Cable TV

Four MSOs levied penalty for non-payment of entertainment tax

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NEW DELHI: Even as Siti Cable ‘vehemently’ denied any allegation of tax evasion as alleged by the Delhi Government, similar notices were issued to three other major multi-system operators (MSOs) for paying Rs 243.77 crore as dues, due to a default in payment of entertainment tax.

While there was no official word from either IndusInd Media and Communications or Hathway Cable and Datacom, a source from Den Networks informed Indiantelevision.com that the action by the Delhi Government was a violation of a commitment given by it to the Delhi High Court that no coercive action would be taken during the pendency of a case challenging the levy of entertainment tax and vires of the Delhi Entertainment and Betting Tax Act 1996.

The source also added that an appropriate reply would be given both to the Delhi Government and in the High Court, but said no notice had been received so far and the MSO had learnt about it only from a newspaper report.

Siti Cable, which had received a similar notice for Rs 33.12 crore, had said in an official statement, that it had been depositing the entertainment tax regularly on the basis of collections. The MSO had “vehemently’ denied the allegation of tax evasion.

The matter is pending vide its Writ Petition of 2014, Siti Cable had earlier said.

According to reports, the charges levied on the four MSOs include a 100 per cent penalty and an interest on dues.

The levy is for 2013-14 and 2014-15. Den Networks has to pay just over Rs 88.81 crore, while Hathway Cable and Datacom need to pay around Rs 59 crore, IndusInd Media and Communications has been asked to pay just under Rs 52 crore for two years.

While noting that these MSOs need to file their tax every month, a Delhi Government source said that Den, Hathway and IndudsInd had between them around 2.6 million subscribers in the capital. 

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