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DTH operators lose battle over Gujarat entertainment tax

Indian direct to home (DTH) satellite TV operators have been ordered to pay within two weeks the entertainment tax due to the government of Gujarat by an Ahmedabad court.

The division bench of acting chief justice Bhaskar Bhattacharya and justice J B Pardiwala said Tata Sky, Bharati Telemedia, Dish TV India, and Bharat Business Channel must deposit almost INR 20 crore in taxes accrued since September 2010.

The DTH operators have moved the high court following the imposition of entertainment tax by the Gujurat Government in 2009. They had felt the state government’s decision to levy INR 200 per DTH connection was contrary to the law, given they were providing a service.

During the hearing, the court imposed an interim order requesting the broadcasters pay the entertainment tax due while the matter was being considered, but they failed to comply.

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