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Delhi govt slaps ent tax notices on DEN, Hathway, IMCL

MUMBAI: After coming down heavily on Siti Cable for allegedly not paying entertainment tax, the Arvind Kejriwal-led Delhi government has decided to clamp down on other multi-system operators (MSOs) in the capital city.

Entertainment Tax liabilitThe government has issued notices to DEN Networks, Hathway Cable & Datacom and IndusInd Media & Communications Ltd (IMCL). The three MSOs will have to cough out Rs 199.79 crore (Rs 2 billion) as entertainment tax.

The government has asked DEN, Hathway and IMCL to pay up Rs 88.81 crore (Rs 888.1 million), Rs 58.99 crore (Rs 589.9 million), and Rs 51.99 crore (Rs 519.88 million) respectively. The figure includes the interest on dues and 100 per cent penalty for ‘evading’ entertainment tax.

As reported earlier by TelevisionPost.com, the government had slapped an Rs 331.2 million entertainment tax notice on Siti Cable.

Hathway Cable & Datacom MD and CEO Jagdish Kumar confirmed that the MSO has received the entertainment tax notice from the government.

“According to the Delhi government, our entertainment tax is a little aboveJagdish-Kumar01 Rs 29 crore. With 100 per cent penalty, it totals under Rs 59 crore. We have already challenged the matter in the Delhi High Court and it is currently sub judice,” Kumar told TelevisionPost.com.

The tax assessment is for the financial years 2013–14 and 2014–15. There are 26 lakh (2.6 million) cable subscribers in the city, as per details submitted by these MSOs.

The MSOs have been collecting entertainment tax from customers at the rate of Rs 20 per month through their local cable operators.

A DEN official said that the company is yet to receive notice from the government. He also stated that there was no reason for the government to demand entertainment tax when the matter is sub judice.

“We don’t know on what basis the government has fixed the quantum. It is based on presumption calculation. We will decide on the next course of action when we get the notice,” the official stated.