DTH Service Provider Tax Liability

The Supreme Court has ruled that DTH operators like Tata Play are liable to pay both service tax to the Central Government and entertainment tax to State Governments. The Court explained that providing a DTH service has two different aspects: the "service" of broadcasting and the "entertainment" you receive. Since these are two distinct aspects, both the Centre and the States have the power to tax their respective parts of the same activity. This judgment settles a major tax dispute and confirms the power of states to levy entertainment tax on DTH services.