Specials

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

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/event-coverage/2016/02/28/368739-arun-jaitley-4-crop-pti.jpg?itok=jRy-5ZBa

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

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/01/03/tv.jpg?itok=oNfpKXq7
2019: A year that was for English GECs

2019 was all about implementation and the impact of new tariff order (NTO). It has been a year of disruption and innovation for the industry. Overall it was a challenging year for niche channels but throughout the year, channels made various efforts to overcome them and retain its consumer base.

Specials Year Enders
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/01/02/group.jpg?itok=wqx8gil0
Industry hopes pinned on a better 2020 for mainline advertising

2019 was a mixed bag of opportunities and challenges for the advertising industry. Television primarily witnessed a great drop in its growth with an ambiguous first quarter because of the new tariff order and a slow final quarter because of the economic slowdown.

Specials Year Enders
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/01/02/tv.jpg?itok=9E94iYHt
TV & video people who made an impact in 2019

Even as the curtains have gone down on 2019, Indiantelevision.com is happy to reveal its list of senior executives from the business of TV and video, who were constantly under the arc light throughout the year or made waves on account of something they did.

Specials Year Enders
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/31/year_ender2019_0.jpg?itok=cxdGPV-C
Best moment marketing trends of 2019

MUMBAI: Brands have always been serious about their marketing plans. They spend months strategising their campaigns, involve the best of the technicians and talents to aid the creative process, and try to come out with communications that build trust among their target consumers. But the changing...

Specials Year Enders
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/31/fer.jpg?itok=I4nd9ctu
How has 2019 been for youth and music category?

In its 25 years of running, MTV has set many benchmarks in the youth entertainment genre cementing itself as the Universe of the Young. Undisputedly, India’s No 1 Youth Entertainment Brand, MTV reaches out to over 300 million homes today and witnessed a whopping 20 billion minutes of watch time on...

Specials Year Enders
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/30/basant.jpg?itok=r7bfWRtS
2019 - A year of high action for the television news industry

Back in the day, a typical morning in an Indian household was incomplete without a cup of tea and a hefty printed newspaper. This might sound primitive to the current generation of digital natives but newspapers were, and, in fact, still are, a key source of news for many people.

Specials Year Enders
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/30/tab.jpg?itok=tzpSghCM
Higher investment in content & tech, innovative marketing strategy led OTT industry in 2019

The over-the-top (OTT) market in India turned more saturated in 2019. To make a dent in the cluttered space, the contenders have significantly upped their game with a greater amount of high-quality original content, incorporating new technologies and increasing marketing spend.

Specials Year Enders
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/27/Vishal-Maheshwari.jpg?itok=4i8y7wKQ
OTT India 2019 – key trends and crystal ball gazing for 2020

While  creating this write up on something that’s as wide and far as India OTT we decided to be as objective as possible and use data to establish and talk about some key trends that we see both unique as well as interesting on how the sector is evolving. App Annie is a third-party app analytics...

Specials Year Enders
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/26/Digital_Advertising_19.jpg?itok=_YrIVtCF
Despite maximum internet shutdowns, digital advertising enjoyed heyday throughout 2019

MUMBAI: Year 2019 was a tough slide for the advertising industry in India. The traditional model suffered because of the ambiguity over new tariff orders and the sector jumped into a reeling spiral because of the economic crunch. But there were not many hurdles to stop the magnificent growth of...

Specials Year Enders

Sign up for our Newsletter

subscribe for latest stories