Mohinder Verma
JAMMU, Nov 9: In a very harsh decision, the Government has imposed 50% entertainment duty on customers of cable TV operators across the Jammu division thereby putting enormous burden on the common masses. Moreover, the operators have been warned of stringent action in case of their failure to comply with the orders.
The explicit instructions in this regard have been issued by Deputy Excise Commissioner (Executive) Jammu, Mohammed Shahid Saleem vide Notice No.SRO/ DECEJ/Exc/ 6232-42 dated November 6, 2011, the copy of which is available with EXCELSIOR.
“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”, reads the notice.
According to the notice, the Government vide SRO-121 of 2002 dated March 27, 2002 had fixed the rate of entertainment duty leviable from persons admitted to entertainment at 50% of the amount of payment charged for admission to such entertainment.
While making the structure of levy of Entertainment Duty more clear and understandable for the cable TV operators, the Deputy Excise Commissioner said, “the entertainment duty is to be paid by the customer and not by the proprietors/contractors/businessmen running the cable network”, adding “the proprietors/contractors/businessmen have to simply collect the cable network connection charges along with the entertainment duty on monthly basis from the customers and deposit the entertainment duty in the nearest Government Treasury in Head 0045”.
Quoting an example, the Deputy Excise Commissioner said: “If the monthly charges/fee for providing cable TV connection is Rs 100, the proprietors/ contractors/ businessmen running the cable TV network has to charge from customer Rs 50 as entertainment duty over and above the actual rate of Rs 100 and thus making the total payment to be made by customer 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 Government has also directed that all the contractors/ proprietors or businessmen conducting satellite cable TV operations and providing cable connection to the customers on monthly charges/fee, to get their trades registered with the Excise and Taxation Officer, Entertainment, Excise and Taxation Complex, Panama Chowk Jammu with respect to the cable operators functioning in Jammu district.
For the cable operators functioning in Doda, Kishtwar, Ramban, Kathua, Samba, Rajouri, Poonch, Udhampur and Reasi districts, the registration has to be done with the ETOs of the concerned Excise Ranges before carrying out the cable TV operations.
“If any cable TV operator fraudulently evades collection and payment of entertainment duty or obstructs any officer making any inspection or fails to comply with the orders, he shall be liable for rigorous imprisonment for a period of six months and fine”, reads the notice.
Through this notice, the Excise Department has given final opportunity to all the cable TV operators operating in Jammu division to comply the directions. “The failure to comply with the directions shall invite action as prescribed by law—registration of FIR, start of criminal proceedings, sealing and blacklisting of concerned cable TV networks”, the Deputy Excise Commissioner has made it clear in the notice.
Describing the notice as harsh decision amounting to putting unnecessary burden on the customers, sources said, “instead of ensuring that cable TV operators pay entertainment duty from the money being charged from the customers, the Government is going to burden the common masses by asking the cable TV operators to collect entertainment duty of 50% from the customers over and above the actual rate”.
“It seems that Government has not taken into consideration the impact of such a harsh decision on lakhs of cable TV customers in order to increase tax collection”, sources further said, adding “though a similar SRO was issued in 2002 but the same was largely applicable to cinema halls only and not the cable TV customers”.
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