Tax evasion by cable TV operators costs government dear, claims RTI activist

Times of India: Puducherry: Saturday, December 23, 2017.

Replies to a query filed by an RTI activist suggest that cable television operators in the Union territory of Puducherry have been furnishing false information on the number of subscribers to evade tax to the tune of several crores of rupees since they commenced operations in the Union territory.

The response to P Raghupathy's query revealed that there are a meagre 9,478 subscribers in Puducherry municipality limits and 8,600 subscribers in Oulgaret municipality limits. Puducherry municipality has a population of 2.44 lakh (2011 census).

"It is beyond doubt that the figures furnished by the cable television operators are false. Going by the census figures, there must be not less than 60,000 families in Puducherry municipality limits and more than 70,000 families in Oulgaret municipality considering that a nuclear family has four members. In the present scenario, it is hard to find a household without a television with cable connection. There are several households with more than one cable connection," said Raghupathy. There are 400 cable TV operators in Puducherry.

The operators even after submitting false accounts had not settled entertainment tax (10%) to the tune of about Rs 40 lakh. Currently, the tax for cable television services had been fixed at 18% under the GST regime and if the cash-strapped Puducherry government failed to undertake a survey on the number of subscribers and ensure collection of tax from the operators, it will continue to lose revenue.

There have been repeated demands from several quarters urging the Puducherry government to take over the cable television operations on the lines of the Tamil Nadu government to regulate and streamline the operations of cable televisions and multi-system operators (MSOs). "Puducherry must adopt the Tamil Nadu model and take over the operations of cable televisions and MSOs who have been repeatedly accused of violating cable television networks (amendment) rules, copyrights act and a host of relevant acts and rules," said Raghupathy.

He said that Puducherry continues to be a hub for pirated DVDs of Tamil and other language films. Now, a section of operators screen new releases to subscribers. The government booked only two cases in the last decade or so against cable television operators for flouting norms. It banned a private cable channel for screening 'Udta Punjab' a day before its release last year after a tweet from actor Suriya. The same channel was booked in 2010 for screening the Hindi version of 'Raavan'.

Raghupathy has submitted a memorandum to lieutenant governor Kiran Bedi seeking immediate action against the operators.