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The MIB had convened the meeting to tackle
a long-standing demand of the sector. It had
invited representatives from the finance ministry
as well as commissioners of entertainment
tax from around the country.
Avnindra
Mohan, secretary MSOA, told indiantelevision.com that the Alliance feels now that
inviting these senior officials shows that the MIB is now serious about conceding
these demands of the sector.
In
its presentation, the MSO showed that while
entertainment tax is levied on three different
calculations, service tax is charged at
a fixed rate of 12.36 per cent. But in the
current circumstances, the taxes are neither
fully collected, nor do they reach the government
to the fullest extent.
The
Alliance has shown that MSOs are not directly
in touch with subscribers. Though some states
had amended their entertainment tax laws
to make MSOs responsible for depositing
this, various courts had stayed the amendments.
After
the Supreme Court in 2005 upheld those amendments,
state governments are demanding arrears
to be paid, which is a colossal amount of
money. Hence there is need to waive these
arrears, the MSOA says.
In
demanding that service tax be handed over
partly or wholly to the state government,
the MSOA sought to cite the precedent in
which Additional Excise Tax was levied on
cotton, tobacco and sugar cane and handed
over to the state governments, instead of
sales tax exemption on these three items.
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