Deposit entertainment tax, Gujarat court tells TataSky

A bench of Chief Justice S.J. Mukhopadhaya and Justice Anant Dave directed the company to deposit the tax amount and added that it would be subject to the final outcome of the petition.

Earlier, another division bench which took up the case, directed the company to deposit the tax amount for the January-March quarter. TataSky approached the high court challenging an amendment to the Gujarat Entertainments Tax Act by the government which enables the state to levy tax on companies broadcasting entertainment channels.

The company contended that it was paying service tax for the DTH broadcast and it could be considered as a service providers but not an entertainment provider.

The advocate general appearing on behalf of the state contended that in a similar matter, the Supreme Court held that operators are liable to pay the entertainment tax.The bench questioned counsel whether the cable operators, who provide the same service to their subscribers through cable, were liable to pay the entertainment tax.
The matter has been kept for final disposal on November 23.