The Delhi government is considering an amendment in Delhi Entertainment and Betting Tax Act 1996 to bring the DTH operators and entertainment business of Internet and mobile phones into the Entertainment Tax ambit. Soon, caller tunes, ring tones and other entertainment downloads on your mobile phones would cost more.
The bill does not quantify the tax rate but the officials said the tax rate, which would be 12 percent ad valorem, would be later notified by the Delhi government. The Internet Protocol TV, which is soon going to be launched in India, has been included in the bill for levying the Entertainment Tax.
Also, the Wi-Fi mode used for transmitting TV signals would come under the tax ambit as per the draft bill. It also makes provision for taxing the value added services for entertainment purposes of cellular operators. The bill keeps the option open for any new technology coming up for transmitting entertainment packages as liable for paying tax.
Source: Asian Age
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