Karnataka HC rules against inclusion of service tax in entertainment tax calculation on DTH
The Karnataka High Court has ruled that service tax should not be included in calculating entertainment tax on TV broadcast subscription fees under the Karnataka Entertainment Tax Act. The court set aside the Karnataka Appellate Tribunal's order and remanded the case for reconsideration, directing a fresh decision within three months.
The Karnataka High Court has ruled that service tax should be excluded from the calculation of entertainment tax levied on TV broadcast subscription fees under Section 4G of the Karnataka Entertainment Tax Act, 1958.
This decision came in response to a petition by Direct-to-Home (DTH) operator Dish TV India. The order was passed on February 20. Dish TV filed a revision petition challenging the Karnataka Appellate Tribunal’s (KAT) order dated July 29, 2022, which upheld the inclusion of service tax while levying entertainment tax on the DTH operator—a move it argued was unconstitutional.
