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TN to tax DTH and IPL

Chennai,Sept 14 (): Tamilnadu Entertainment Tax Act will be amended to levy tax on Direct to Home (DTH) services and IPL matches played in Tamil Nadu. A Bill in this regard was introduced in the State Assembly today by State Commercial Tax and Registration Minister Agri Krishnamurthy.

The DTH service providers, who transmit private satellite channels directly to consumers’ house in the State, will be imposed 30 per cent as entertainment tax on overall price, excluding the service tax. This move is aimed at curbing the sales of DTH service of Sun network which has a major share in the State. Arasu Cable service has been stuck with no pay channel offering its services primarily the Sun TV channels. Irate consumers have bombarded the cable operators who in turn are turning up at Arasu office. The operating rooms of Arasu too is said to be of poor quality due to which the transmission is poor.

Taking advantage of this the DTH operators is in demand. Residential complex are opting for DTH to be away from the cable operators. IPL matches which were not taxed so far except for the local bodies tax will now pay 25 per cent which will be levied as entertainment tax on the total sum of cash including the tax amount paid, for getting permission to hold the T20 matches (as part of the IPL) in Chennai.

The tax on IPL would mean that the tickets would be more costly. The IPL which is a money spinner and Chennai being one of the main centres would mean more revenue to the exchequer.