SC upholds states' power to levy entertainment tax on DTH, cable services

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SC upholds states' power to levy entertainment tax on DTH, cable services - Business Standard

Quick Summary:

Central to the Court’s decision was the “aspect theory”, which permits different levels of government to tax separate components of the same transaction.“The activity of broadcasting is for the purpose of entertainment of the subscriber...

The court, however, disagreed.“No entertainment can be presented to the viewers unless the broadcaster transmits the signals for instantaneous presentation of any performance, film or any programme on their television,” it said.

The high court had held this classification violated Article 14 of the Constitution.“The High Court erred in holding that the classification was unreasonable and lacked any rational nexus with the objects of the Kerala Act of 1976,” the Supreme Court ruled, allowing Kerala’s appeal.