Maharashtra PAC recommends cancelling licences of cable TV operators evading tax

PAC asks Govt to act tough on cable TV operators

* Recommends cancellation of licences of cable television operators evading entertainment tax

* Asks the Government to constitute a consultative committee to look into matters related to set top box, direct-to-home service

Staff Reporter

Expressing serious concern over low recovery and loss of revenue due to under-reporting of number of cable television connections, Public Accounts Committee (PAC) has blasted the Government for not having any mechanism of control over cable television service provider companies and direct-to-home (DTH) companies. Besides, it has made some strong recommendations to improve revenue collection.

The PAC tabled its latest report during recently concluded winter session of State Legislature. In the report, apart from dealing with various departments, the PAC has attracted the attention of the State Government towards cable television service. Observing that the Government has no control whatsoever over cable television service provider companies and DTH companies, the committee has pointed out that revenue collection through entertainment tax and fine slapped on cable television operators was very less considering the actual number of cable television connections.

As per the PAC report, only one cable TV connection is registered in hospitals and hotels though number of TV sets is actually 50-100. This results in loss of revenue to the Government. The latest available figures showed that the Government had earned only Rs 94 crore from cable TV connections. It should have earned at least Rs 500 crore from this, the PAC observed. Considering this, PAC asked the Revenue Department to coordinate with Information Technology Department and constitute a consultative committee on set top box and DTH service. This will improve reporting of actual number of connections and set top boxes used at various commercial establishments, and enhance revenue collection.

Expressing strong displeasure over the poor collection of entertainment tax and fine from cable TV operators in Mumbai, Pune, Jalgaon, Akola, and Aurangabad, PAC has asked the Government to concentrate seriously on collection of revenue in these cities. Recommending tough action against violators, PAC has asked the Government to revoke licences of cable operators evading tax . Further, the amount of fine should be increased, it has recommended. The committee has put on record the observation that many cable television service operators were running private local channels. “These channels should not be allowed as the Government gets no income from these,” it has stated.

As far as major cities like Nagpur, Mumbai, Pune, Nashik, Thane, and Aurangabad are concerned, the PAC has observed that these cities have strong presence of multi-system operators. These multi-system operators should be brought under the ambit of entertainment tax. For the purpose, PAC has recommended, the Government should make necessary amendments to relevant laws if required. 

(Published in The Hitavada CityLine on December 23, 2013)

Comments

  1. Unknown7 November 2014 at 10:56

    Interesting blog. This is one of my favorite blog also I want you to update more post like this. Thanks for sharing this article.
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