UP Govt Eyes Tata Sky & Dish TV to Increase Revenue

SIDDHARTH KALHANS
Lucknow, 22 April


The growing number of Direct to Home (DTH) connections has given Uttar Pradesh a new idea to increase its entertainment tax revenue.
The entertainment tax department of UP government has proposed a separate clause in its Entertainment Tax Act 1989 under which the DTH operators such as Tata Sky and Dish TV would made state coffer rich by giving it tax per connections. Though a matter regarding charging of entertainment tax from Tata Sky and Dish TV is pending in the High Court both these companies have been giving such tax for Lucknow city only.
As per the assumptions of the UP entertainment tax department Tata Sky has 1.25 lakh connections in the entire state while its rival Dish TV has 1.75 lakh connections. Both these companies are adding at least 10000 consumers every month as per the survey of entertainment tax department . According to the entertainment tax commissioner of UP, Ramendra Tripathi, at present the department is only getting Rs 30 per connections from Tata Sky and Dish TV for Lucknow city only. Both these companies have shown 10000 connections in Lucknow. `We want to bring Tata Sky and Dish TV in the ambit of entertainment tax with a spate mention of them’, said entertainment tax commissioner while talking to the Business Standard. He said that growth in number of cable connection is coming down due to the DTH services. In the financial year 2007-08 the growth in number of cable connections of 10 per cent only, informed Tripathi.
The deputy commissioner, entertainment tax, VK Srivastava when approached by Business Standard said that department has proposed changed in the section 2(G) of the UP Entertainment Tax Act. The proposal would now go to the state cabinet for its approval after which it would become Act or ordinance may be issued. The entertainment tax department has proposed a flat rate of 30 per cent tax on the DTH operators. If the act comes into force with the same number of DTH connection about which data is available with the department, there would be an addition of around 25 crore as entertainment tax. `DTH operators at present are in the ambit of general entertainment which would change after state cabinet gives its nod to the proposal’, said Srivastava. He said that very soon the cases of Dish TV and Tata Sky pending in the courts would be disposed off.