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DTH, IPL must now pay entertainment tax in TN

Direct to home (DTH) satellite television services and local Indian Premier League (IPL) matches are now subject to entertainment tax in the state of Tamil Nadu after changes announced last month.

The Hindu cites sources who estimate this latest move will provide the state government almost INR 90 crore per annum. In 2010-2011, the Tamil Nadu Government's revenue from entertainment tax was INR 15 crore.

The amendments to the Tamil Nadu Entertainment Tax Rules, which were reported on 16 September by Rapid TV News, were notified with effect from 27 September 2011, after receiving statutory approvals.

DTH operators and the IPL must now register with the Tamil Nadu commercial tax authorities. DTH services are now subject to 30% entertainment tax and IPL 25%.

The tax is expected to set DTH operators back a combined total of INR 75 according to The Hindu, while the Tamil Nadu Government should net some INR 18 from IPL matches played in Chennai.

The changes, voted for on 14 September, also raise tax on cinema tickets in Tamil Nadu from 15% to 30%.

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