50% entertainment duty imposed on cable TV network

Jammu, November 10:  With a decision of imposing  50% of entertainment duty on cable TV operators across the Jammu division, the government has put massive burden on the cable TV subscribers. The increased excise duty naturally will be passed by the operators to the consumers and as such the monthly bills can be dearer.

As per reports in media, the instructions to impose 50% entertainment duty were issued by Deputy Excise Commissioner (Executive) Jammu, Mohammed Shahid Saleem vide Notice No.SRO/ DECEJ/Exc/ 6232-42 dated November 6, 2011. The notice reads, “Cable TV networks are being operated in various districts of the Jammu division by proprietors/contractors/businessmen without paying entertainment duty as prescribed by the J&K Entertainment Duty Act, 1959 and this was brought to the notice of cable TV operators vide circulars dated August 4, 2015 and October 31, 2015.”

According to the notice, the Government vide SRO-121 of 2002 dated March 27, 2002 had fixed the rate of entertainment duty to be levied from persons admitted to entertainment at 50% of the amount of payment charged for admission to such entertainment.

The Deputy Excise Commissioner while making the announcement of Entertainment Duty, he also explained the structure and said the duty will be paid by the customer and not by the proprietors/contractors/businessmen running the cable network. The people running the cable network just have to collect the entertainment duty along with their monthly cable network connection charges from the customers and deposit the entertainment duty in the nearest Government Treasury in Head 0045.

He also quoted an example and said that if the cable connection has been charged for Rs 100, now the total charges including entertainment duty will be Rs 150. Out of Rs 150 collected, the proprietors/contractors/businessmen have to deposit only Rs 50 in the Government Treasury and the receipt of payment made is to be deposited in the office of concerned ETO

The Deputy Excise Commissioner also warned that strict action will be taken if somebody fails to comply the orders.

Image Courtesy – The Hindu Business Line