Recently the Mumbai region has placed the responsibility for collecting India’s entertainment tax firmly onto the shoulders of the major MSOs. Previously the cash was collected by the thousands of smaller Local Cable Operators.
Now four of India’s largest MSOs are hitting back. Den Networks, Hathway , Siticable and inCable have filed separate writs in the Delhi High Court which challenge several aspects of the new tax-gathering ruling. First hearings took place January 21st and which saw the Court grant temporary relief – suspension – from the ruling. The tax authorities now have 4 weeks to file their response and a hearing is scheduled for March 13th.
The grumbles vary according to each operator. Hathway says that the local operators have collected the tax for many years and the pattern doesn’t need to be changed. Siticable is arguing that it is unfair that an MSO should be obliged to pay the tax even if the local operator has failed to collect the cash.