Cable operators are not having a sigh of relief after the enforcement of mandatory digitization. The organizations of cable operator in are in state of surprise as Delhi Government is trying to charge some local cable operators with evading taxes.
According to the local cable operators, all the set top boxes are being imported by the MSOs and the exact number is also available with these MSOs who file their records with TRAI.
President of Cable Operators Federation of India Roop Sharma said that, ‘It was for the importer of the MSO to pay VAT or other taxes and this did not fall in the realm of the LCO.
Under the Digital Addressable System (DAS), even the entertainment tax has to be paid by the MSO who generates the bill, and the LCO does not come into the picture. Prior to digitisation, the LCOs generated the billing for the consumers, Sharma added. She also stressed that the LCOs had supported digitisation as they were consistently being accused of under-reporting, and wanted to ensure transparency.
Earlier reports had said that the Delhi government had alleged that LCOs had been evading taxes by concealing the number of connections.