Direct-to-home (DTH) player Tata Sky on 29th April has submitted a demand draft of Rs 383 crore (Rs 3.83 billion) to the Ministry of Information and Broadcasting (MIB) towards licence fee for the year 2013–14 as per the rate specified for licence as well as past dues, for which the ministry had raised a demand note on 24th March.
Tata Sky MD and CEO Harit Nagpal said, “We hope that this will end the long-standing dispute on the subject and pave the way for a constructive rationalisation of taxes with the support of our parent ministry.
As reported in Cablequest.org, the ministry had, in March this year, asked the DTH players to cough up pending licence fee dues amounting to Rs 2,066 crore (Rs 20.66 billion). Out of this, Tata Sky’s dues were Rs 620 crore ( Rs 6.20 billion).
The MIB had asked the players to submit the amount within 15 days, following which all the DTH operators had moved the TDSAT and got a reprieve till 6 May.
The MIB had raised the licence fee demand based on Clause 3.1.1 of DTH licences. According to the said clause, gross revenue shall be calculated without deduction of taxes and agency commission, on the basis of billing rates, net of discounts to advertisers.