Income tax officials could soon knock on the doors of India’s largest DTH service provider Dish TV for recovery of tax dues for the last fiscal year.
Tax officials feel the company by understating its tax liability actually ended up paying less tax than other DTH players with lesser number of subscribers.
“For the fiscal year 2010-11, Dish TV should have paid R150 crore as license fee but it has paid only R39 crore,” a senior income tax official told Hindustan Times on the condition of anonymity.
License fee is the amount paid annually by a DTH licensee company to the government. It is around 10% of the gross revenue earned in a fiscal year.
“We are not aware about the license fees paid by the other operators as that information is not in public domain. We are paying the license fees based on the prevailing regulatory position and as such there is no anomaly at all,” said DishTV’s spokesperson.
“Entertainment tax is a state subject and the rate of levy varies from state to state. The amount of entertainment tax is a function of the number of subscribers in any particular state and the average subscription pay out by the subscribers in the said state. We are fully compliant with all applicable statutory liability including entertainment tax,” he said.
During its scrutiny of account books of Dish TV, the
I-T department found certain irregularities, the official said. “We might conduct a survey under section 133A of the Income Tax Act to verify account books and any document lying in its premises if the company does not come clean on its accounts.”
DishTV has a registered subscriber base of 11.3 million as of July 2011. The same stood at 10.4 million on March 31, 2011.