Tuesday, April 14, 2015

Hathway Cable, Den, IMCL asked to pay INR2 bn as entertainment tax

Delhi Government has asked three multi-system operators (MSOs); DEN Networks, Hathway Cable & Datacom and IndusInd Media & Communications Ltd (IMCL) to pay INR two billion as entertainment tax. The Arvind Kejriwal-led government had earlier directed Siti Cable to pay INR 331.2 million as penalty for tax fraud.
DEN has to pay 888.1 million, while Hathway needs to cough up 589.9 million INR and IMCL has been told to pay INR519.88 million. The amount includes interest rates as well as 100 % penalty for not paying the entertainment tax on time.
Jagdish Kumar, who is the MD and CEO of Hathway Cable & Datacom has confirmed that the company has received a notice from the government. “We have already challenged the matter in the Delhi High Court and it is currently sub judice,” Kumar told TelevisionPost.com.
Siti Cable, the MSO that was hit by a fine earlier this week, has denied allegations of tax fraud. In a statement to Bombay Stock Exchange, Siti Cable denied charges of entertainment tax evasion.  “It (Siti Cable) has already challenged the vires of the Delhi Entertainment and Betting Tax Act, 1996 vide its Writ Petition being No. 427 of 2014 which is subjudice before the Hon ble Delhi High Court,” the company told BSE.

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