Tata Sky not to pass service tax benefit to consumers

[Sathish]

Mumbai, Feb 26 Tata Group-owned Direct-to-Home (DTH) service provider Tata Sky today said that it will not pass on the reduced service tax benefit to its customers as it did not levy it separately.

"From day one, Tata Sky has been offering all its packages inclusive of all taxes and do not charge these separately. Hence there won&apost be any implication on our pricing," Tata Sky Managing Director and CEO Vikram Kaushik said in a statement here.

The Government had reduced service tax by two per cent to 10 per cent.

Kaushik, however, appreciated the move of the government saying,"The DTH industry has been heavily taxed and the reduction in service tax is a progressive measure taken by the Government".

Consumers of Dish TV, however, would reap benefit as the Essel Group firm would pass on the entire benefit to them.

[saurabh_g]

This is just cheating by tata sky, They are cheating with their customer by not passing them the benefit of service tax reduction to their subscribers.

[saurabh_g]

Tata sky not to pass on benefit
Dish TV announced that subscribers would have to pay 2% lower service tax at 10.36%

TATA Group-owned directto-home (DTH) service provider Tata Sky on Thursday said it would not pass on the reduced service tax benefit to its customers, as it did not levy it separately.
Essel group firm Dish TV, meanwhile, announced that its 4.9 million subscribers would now have to pay 2 per cent lower service tax at 10.36 per cent.

“From day one, Tata Sky has been offering all its packages inclusive of all taxes and do not charge these separately. Hence there won’t be any implications on our pricing,” Tata Sky managing director and CEO Vikram Kaushik said in a statement in Mumbai.

Dish TV chief operating officer Salil Kapoor said in a statement in Delhi, “In November 2008, we had started charging service tax extra on our service, as till then the company was bearing the burden of paying this tax on behalf of the subscribers. We take a lead in passing on the full benefit of service tax reduction to our 4.9 million subscribers.” The government had on February 24, reduced serv ice tax by 2 per cent to 10 per cent in its third stimulus package to give a boost to industry. Kaushik appreciated the move of the gov ernment saying, “The DTH industry has been heavily taxed and the reduction in service tax is a progressive measure taken by the government.” Dish TV’s Kapoor said subscribers now pays 10.36 per cent service tax against the earlier 12.36 per cent on his monthly packages and a la carte packs. Other industry players, however, might not follow suit. Airtel and Sun Direct were not available for comment.

The industry unanimously agrees that the multiple taxes imposed by the Centre and the states pose a barrier to the growth of the DTH industry.

http://e.mydigitalfc.com/DCF/DCF/2009/02/27/index.shtml
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