India Broadband Forum

yoursraman

Dish TV to give benefit of reduced sales tax to consumers


Essel group’s direct-to-home (DTH) services company Dish TV on Thursday said it will pass on the benefit of the reduced sales tax to its consumers. In the past DTH companies had indicated that they might not be able to pass on the service tax benefits to the consumers since they already provide the products at a subsidised price.

In a statement, Dish TV COO Salil Kapoor said, "Earlier we were bearing the burden of service tax on behalf of the subscribers. In November 2008 we had started charging consumers for the service tax. Now we will pass the full benefit of the reduction in tax component to our 4.9 million subscribers." The government had announced a 2% cut in service tax which means Dish TV consumers would now pay a service tax at 10.36% rather than 12.36%.

But Mr Kapoor pointed out that DTH industry is still reeling under multiple taxation. The service tax, entertainment tax, value added tax and license fee adds up to 40% of subscription revenue. The DTH industry has been lobbying for cutting license fee from 10% of the gross revenues to 6%.

Information Source: Economic Times: Dish TV to give benefit of reduced sales tax to consumers- Media-Media / Entertainment -News By Industry-News-The Economic Times

devrajofjaipur

This is not true. The thing is, only Dish TV was using double tax lay out.
Anyone using Dish TV for more than 1 years knows that Maxi Pack was Rs 262 + taxes which was Rs 300 then Dish TV added 12.36% Taxes. So infact, Dish Tv users are paying double already so Dish Tv is not doing anyone any favour.

just4kix

Incorrect devraj. I know you are a TataSky supporter but that does mean supporting your provider no matter what and rediculing others. The new packages from Dish TV have been advertised as Rs. xxx + Service Tax. So new users will pay Rs. xxx + 10.3% tax. This service tax benefit will pass to the consumers.

It is believed that TS and others will be repricing the package so that overall cost to consumer remains same but they will keep the benefit of the service tax reduction for themselves.

Refer this thread: http://www.indiabroadband.net/tata-s...consumers.html (Tata Sky not to pass service tax benefit to consumers).

Call a spade a spade.

The benefit to consumer is more than 2%. Earlier Service Tax + Education Cess made it as 12.36%. Now the same will be 10.3%. So the benefit is 2.06%.

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devrajofjaipur

Sorry, i didn't mean to ridicule any other provider. And I apologize if it has come out that way. It is true that Dish Tv has reduced the taxes to be passed to consumers and that is not my argument at all. All I wanted to say was that initially maxi pack was promoted as inclusive of taxes. However, on reading my previous post, I realise my language was a bit harsh. No offence intended! and nor am I a crazy "Tata Sky Fan" to defend everything they do.

just4kix

No offence taken. Just putting things in perspective.