DTH

Under GST, taxes on cable, DTH & entertainment services to come down

NEW DELHI: Taxation on entertainment, cable and DTH services shall come down under the Goods and Services Tax regime as the entertainment tax levied by states has been subsumed in the GST, the Indian government said today.

The Finance Ministry in a statement said services by way of admission to entertainment events or cinematography films in cinema theatres will attract 28 per cent GST with effect from July 1. Currently, states impose entertainment tax of up to 100 per cent in respect of exhibition of cinematography films in theatres/cinema halls.

The GST Council has finalized 18 per cent tax rate on cable TV and DTH services.
Currently, these services attract an entertainment tax in states in the range of 10-30 per cent over and above the service tax levy of 15 per cent.

Under the GST regime, hardware equipment for both radio and television transmission and reception is expected to rise.
The rates on services by way of admission to entertainment events or cinematography films in cinema theatres is 28 per cent under the GST as compared to some states which have been charging as high as 100 per cent until now.

Thus, taxes on entertainments and amusements (covered by the erstwhile entry 62 of State List of the Constitution) have been subsumed under GST except to the extent of taxes on entertainments and amusements levied by a panchayat (village administration) or a municipality.

The rate of GST approved by GST Council on access to circus, theatre, Indian classical dance including folk dance and drama is 18 per cent ad valorem. Further, the GST Council has approved an exemption up to a consideration for admission of Rs 250 per person. These services currently attract entertainment tax levied by the States.

Thus, entertainment services will be lower under GST. In addition to the benefit of lower headline rates of GST, the service providers shall be eligible for full input tax credits (ITC) of GST paid in respect of inputs and input services. Presently, such service providers are not eligible to avail of input credits in respect of VAT paid on domestically procured capital goods & inputs or of Special Additional Duty (SAD) paid on imported capital goods and inputs. Thus, while GST is a value added tax, entertainment tax, presently levied by the States is like a turnover tax.

Transmission and reception apparatus for both radio and television have been placed in the top category of 28 per cent of the four slabs of the GST. However, the rates may stabilize as taxes levied by states are subsumed in GST.

Other items coming under the 28 per cent slab are: single loudspeakers, mounted in their enclosures, Audio-frequency electric amplifiers, Electric sound amplifier sets, Parts; Sound recording or reproducing apparatus; and Video recording or reproducing apparatus, whether or not incorporating a video tuner.

Transmission equipment for radio or TV broadcasting reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video cameras recorders reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video cameras recorders also come under this slab.

Monitors and projectors, not incorporating television reception apparatus, reception apparatus for television, whether or not incorporating radio-broadcast receiver or sound or video recording or reproducing apparatus also fall in this category.

Meanwhile, BMR Advisors have said that the information technology sector needs to brace for increase in rates of tax under GST. However, effective planning of credits including on transition stock may aid the sector in mitigating this impact.

In information technology, both imported and domestically produced mobile phones come in the 12 per cent slab.

Shrink wrapped software product (on media) will attract tax rate of 18 per cent, as will Laptops, desktops, peripherals, parts, etc. Monitors and projectors (capable of connecting to ADP) will attract a rate of 28 per cent, while the majority of networking products will attract 18 per cent.

Temporary transfer or permitting the use or enjoyment of any Intellectual Property will attract a GST of 12 per cent.
In services, software services, that is development, design, programming, customization, adaptation, upgradation, enhancement, implementation of information technology software will attract 198 PER cent GST while Electronic supply of software will attract a tax of 12 per cent.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/27/tata.jpg?itok=nNqSclu4
Tata Sky brings international content through new launch - ‘Videshi Kahaniyan’

Amping the content game, content distribution and Pay TV platform Tata Sky has introduced a new platform service - ‘Tata Sky Videshi Kahaniyan’ to offer ad-free International shows and movies dubbed in Hindi for its viewers.

DTH DTH Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/24/photogrid_plus_1632468842992.jpg?itok=-ZjmPnp5
Yes Bank issues notice to Dish TV India calling for EGM

Mumbai: Yes Bank has called for an extraordinary general meeting (EGM) of shareholders of Dish TV India Ltd, after the latter sought an extension on its annual general meeting (AGM) scheduled for 27 September. The bank had issued a notice on 6 September calling for a resolution for the removal of...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/20/dish.jpg?itok=h2Jl3Tl3
Dish TV seeks more time to convene AGM, defers 27 Sep meeting

Dish TV has sought additional time to convene the next Annual General Meeting (AGM), which was initially scheduled to be held on 27 September. The company has cited some regulatory approvals, that it needs to obtain before going ahead with the meeting.

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/16/x.jpg?itok=zzZGqJBe
DTH expands even as pay TV market saturates

Pay TV subscription revenue is expected to reach $7.6 billion by 2026 over $6.4 billion in 2021, stated Media Partners Asia in its latest report on India’s online video market, which also highlights the increasing market share of Direct-to-home (DTH) even as cable TV remains in structural decline.

DTH DTH Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/09/photogrid_plus_1631181635545.jpg?itok=JqamlZts
DTH operators write to TRAI over broadcasters offering pay channels on DD Free Dish

Mumbai: Direct-to-home (DTH) service providers including Tata Sky and Airtel Digital TV have written to the Telecom Regulatory Authority of India (TRAI) asking the telecom regulator to address the issue of broadcasters making their pay channels available on Prasar Bharati’s FTA platform DD Free...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/07/photogrid_plus_1631011064471.jpg?itok=l2QMqoyb
Tata Sky’s new ad promotes aggressively priced Thalaiva pack

Mumbai: Content distribution platform and pay-TV platform Tata Sky has launched a new campaign for potential customers in Tamil Nadu. The narrative of the campaign "Vera Level" communicates the elevated entertainment options that are offered by a Tata Sky connection – highlighting the regional...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/07/yes.jpg?itok=6x5eZLAz
Yes Bank seeks removal of current directors of Dish TV

YES Bank, which holds 25.63 per cent stake in Dish TV India Ltd has sought the removal of the current directors and managing director of the direct-to-home service provider. The bank has recently issued a special notice asking the company to put its proposal to vote at Dish TV’s upcoming annual...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/09/01/photogrid_plus_1630476619374_0.jpg?itok=_XpI_j-J
DTH operators report sharp drop in subscribers in Jan-March: TRAI

Mumbai: The total number of active DTH subscribers declined to 69.57 million at the end of March 2021 from 70.99 million at the end of December 2020, as per the Telecom Regulatory Authority of India (TRAI). This is in addition to the subscribers of DD Free Dish (DTH service of Doordarshan). The...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/08/26/tata.jpg?itok=Kz-bYLc1
Tata Sky unveils its first batch of Make-in-India set-top boxes

DTH operator Tata Sky on Thursday unveiled its first batch of Made in India- set-top boxes which have been manufactured in partnership with Technicolor Connected Home and Flextronics.

DTH DTH Services

Sign up for our Newsletter

subscribe for latest stories

* indicates required