TAX ON DTH, CABLE TO COME DOWN: CENTRE

Finance ministry on Tuesday said that the taxes on entertainment, cable and DTH services will come down under GST which is scheduled to be rolled out on July 1.

It said that the taxes on these services will come down as taxes on entertainment and amusements have been subsumed under GST except to the extent of taxes on entertainment and amusements levied by a panchayat or a municipality.

“The rate of GST approved by the GST Council on services by way of admission to entertainment events or cinematography films in cinema theatres is 28 per cent. However, the entertainment tax rates in respect of exhibition of cinematography films in theaters/cinema halls, currently levied by states are as high as 100 per cent in some of the states,” said the ministry.

It said that the rate of entertainment tax on cable TV and DTH levied by states is in the range of 10-30 per cent in many states. Apart from this, service tax is also leviable at the rate of 15 per cent. “As against this, the rate of GST approved by GST Council on these services is 18 percent,” said the finance ministry.

It said that the rate of GST approved by the GST Council on access to circus, theatre, Indian classical dance including folk dance and drama is 18 per cent ad valorem.

Further, the council has approved an exemption upto a consideration for admission of `250 per person. “These services currently attract entertainment tax levied by the states,” the finance ministry said.

SUCH service providers are not eligible to avail input credits in respect of VAT paid on domestically procured goods and inputs or of special additional duty paid on imported goods.