Specials

Encourage greater indigenous STB production with tax holiday in budget for DAS to succeed

http://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/event-coverage/2016/02/28/368739-arun-jaitley-4-crop-pti.jpg?itok=LVyriCNo

NEW DELHI: With the Government hoping to achieve complete digitisation of the cable television sector by the end of this calendar year, it is imperative that the Union Budget for 2016-17 being presented on Monday has important concessions for the industry.

Perhaps the most important step would be to give infrastructure status to the Broadcast, Cable and direct-to-home (DTH) sector so that it gets all the benefits and incentives available for infrastructure industry including the availability of finance at a concessional rate.

Though the government claims more than 90 per cent seeding of set top boxes (STBs) in all urban areas covered under Phase III of digital addressable system (DAS) ? a figure disputed by most private stakeholders, it is important that the budget should give some concessions that benefit the sector particularly as far as set top boxes go.

While the Make in India or Digital India initiatives have failed to encourage many indigenous manufacturers of STBs, it is necessary not merely to give some tax concessions under these two schemes but also a tax holiday for some years for those who venture to beat the sale of Chinese STBs and encourage Indian STBs.

Earlier, the Entertainment Wing of FICCI had said in a pre-budget memorandum to Finance Minister Arun Jaitley that the sector should be allowed tax concessions under Section 80-IA of the Income Tax Act.

As the digitisation process and the deployment of STBs are heavy capital oriented sectors needing large investments, FICCI had said they should be allowed to set off accumulated losses and unabsorbed depreciation allowances to be carried forward as per Section 72 A of the Act.

One way of giving greater encouragement to indigenous STBs is to give the broadcast industry the same benefits that the manufacturing sector gets.

FICCI had in fact also said that the rate of taxes, which range from 30 - 70 per cent, especially the entertainment tax imposed by the states, over and above the service tax are punitive in nature. It is important that the overall taxation level is brought down for the sector as a whole.

State Entertainment tax legislations levy high taxes on the subscription earned by cable operators and DTH operators. The non-availability of credit of central taxes against the state taxes and vice versa increases the tax burden on the entertainment industry.

In addition to this, the Central Government has levied service tax at 14 per cent on the transfer of copyrights, which is already being taxed as ?goods? under the various state VAT legislations.

There is therefore need to rationalise taxes or rush through the Goods and Service Tax (GST) Bill to bring parity and clear snags in taxation.

With so many cases pending before TDSAT and the Telecom Regulatory Authority of India (TRAI) constantly being impleaded in such matters, the Government should provide a clarification that the payments made towards carriage fees are not in the nature of royalty or fees for technical services and TDS is required to be made on such payments as per section 194C of the Act.

The Indian media and entertainment industry grew from Rs 918 billion in 2013 to Rs 1026 billion in 2014, registering an overall growth of 11.7 per cent. The industry is estimated to achieve a growth rate of 13 per cent in 2015 to touch Rs 1159 billion. The sector is projected to grow at a healthy CAGR of 13.9 per cent to reach Rs 1964 billion by 2019.

The benefits of Phase I and II of DAS rollout, and continued Phase III rollout are expected to contribute significantly to strong continued growth in the TV sector revenues and its ability to invest in and monetise content. The sector is expected to grow at a CAGR of 15.5 per cent over the period 2015-2019.

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/06/avia.jpg?itok=njOnU16F
Casbaa becomes the Asia Video Industry Association

At an Extraordinary General Meeting of members today, Casbaa overwhelmingly approved the adoption of a new constitution and new name.

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/07/31/balle.jpg?itok=cQD_OGYf
Wizcraft’s 4th broadway styled bollywood musical stage show comes to kingdom of dream

After a glorious run in Mumbai with over 100 shows, Balle Balle - The Biggest and Craziest Indian Wedding Musical theatrical show, is all set to woo audiences in Delhi NCR.

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/07/06/asiasat.jpg?itok=31_HQ_RK
ConnecTechAsia Successful in Bridging the Digital Divide for Governments, Cities and Enterprises with Showcase of Latest Tech and Trends

ConnecTechAsia, the inaugural mega technology event comprising BroadcastAsia, CommunicAsia and the new NXTAsia wrapped up last week after an exciting three days of exhibitions and a summit covering the latest innovations in cloud, blockchain, AI, VR/AR, IoT, robotics, 5G, IP broadcasting, OTT and...

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/06/25/block.jpg?itok=746SRwdG
Lessons Learned With Bitcoin

Blockchain technology is one of the newest buzzwords in business. It is hardly surprising considering that the tech is having such an impact over so many different industries.

Specials Promonet feature
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/06/05/ril.jpg?itok=srJ0kbdQ
The company is collaborating with Lakme Fashion Week and designer Anita Dongre

World Environment Day - 2018 is going to be special as India is hosting global celebrations of the event today. To commemorate the occasion, Reliance Industries Ltd (RIL) has launched a special T-shirt, branded ?The Earth Tee? and designed by renowned fashion designer Anita Dongre, under its unique...

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/04/11/promax_0.jpg?itok=mwaud0s2
Promaxbda India 2018 announces Puja Vohra and Glenn Urquhart as their masterclass speakers

PromaxBDA India has announced its first 2 Masterclass speakers for the 15th edition of its annual conference and awards property in India, which will take place on 23rd May 2018. Speaking at the Masterclass are truTV?s Puja Vohra and creative mastermind Glenn Urquhart.

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/03/19/goafest.jpg?itok=82nEDNeJ
ABBY Awards 2018 shortlists announced

The coveted ABBY Awards that recognizes and rewards excellence across Advertising, Marketing and Media has now announced that the shortlists for the 2018 edition have started being posted, by category.

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/03/09/ficci.jpg?itok=HsYryGot
Ficci Frames and market concludes on grand note

The FICCI Frames and the newly launched content market as part of FICCI Frames 2018 concluded on a grand note.

Specials Event Coverage Ficci Frames
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/03/07/ficci_1.jpg?itok=loYrY-cA
Screen Density: Lessons from the world & Exploring new business models

n Day 2 of FICCI FRAMES happening in Mumbai, there was a session on Screen Density in India attended by some eminent panelists consisting of Mr. William Feng, VP, Greater China, MPA, Kurt Rieder, Head-Theatrical Asia, 20th Century Fox, Kapil Agarwal, Joint MD, UFO, Kamal Gianchandani, Chief of...

Specials Event Coverage Ficci Frames

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories