30% Tax on DTH Service in Tamil Nadu


The Hindu : States / Tamil Nadu : DTH services, IPL matches brought under entertainment tax net
The six companies providing DTH services in the State will have to pay 30 per cent of gross charges as entertainment tax, excluding service tax, to the government, based on their subscription base.
“If the DTH provider charges Rs.100 for a connection, then the company will have to pay Rs.30 as entertainment tax. This is excluding sales tax,” an official explained.
Officials promised that customers would not be charged but were apprehensive that the DTH provider could pass on the burden to them.

So now DTH would perhaps gets costlier in TN. I think DTH companies should not put this burden on customer.
I guess if govt goes ahead with tax, all operators would launch separate packs for TN.
BTW is this move by govt to popularize cable service by govt (and hit Sun Direct DTH)?
Sun TV Network hits 52-week low as Tamil Nadu to tax DTH services