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Transcript of Tax Mini Proj
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Presentation on
Taxation on DTH industry
Presented By..
Rajasekar (554)
Ravisankar (582)
Revathy c (586)Rijutha Ramesh (587)
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Welcomes U All in theWorld Of DTHIndustry
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WAR IN SKY
DIRECT
TOHOME
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What Is DTH?
DTH stands forDirect-To-Home television.
A wireless digital audio / video service is delivered throughsatellite.
Terms Related to DTH Service.
Digital Decoder (commonly known as set top box)
. Viewing Card.
DTH operator.4/26/2011
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Entertainmenttax on DTH services
For the first time, the Gujarat government has proposed to levy an
entertainment tax on Direct to Home (DTH) services available on
television connections across the state. The proposed tax is Rs 200 per
connection on an annual basis.
Presenting the modified budgetary estimates for 2009-10 in the House
on Tuesday, Finance Minister Vajubhai Vala said, At present,
entertainment tax is being levied on cable TV, which is a source of
entertainment for the poor and middle class people in urban as well as
rural areas who pay this tax for the same.
But no tax is levied on DTH services, which are generally used by the
well-to-do people.
This leads to injustice to the poor and middle class people, and also
creates avoidable imbalance in the society. A large number ofrepresentations have been received (by the government) from cable TV
operators regarding the lack of a level playing field. Considering all
these factors, I propose to levy entertainment tax on DTH facility, Vala
told the House.
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PLAYERS IN D.T.H
DISH T.V
TATA SKY
BIG T.V
SUN DIRECT
D.D. DIRECT
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Rs 16000-croreregional Tamillanguage Indian cabletelevision
networkbased in Chennai,Tamilnadu
Established in 1993
DTH service started on 7th December,2007
Offers 20 television channels in fourlanguages,generallytargeting
southern Indian viewers
80:20 jointventure between the Karunanidhi Maran familyand the
Astro Group of Malaysia
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First oneto adopttheadvanced MPEG4
technology
Bettercompression and signal quality
First onereadyto offer HD TV ( High
definition ) content
DVD qualityentertainmentatan affordable
price
Supported by Irdeto's conditionalaccess
solution
Channels in otherlanguages also
Large footprint/coverage
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1.4 million subscribers in
south India makingitthe
largestand mostpopular
DTH serviceproviderin
south India
Expectto reach 3 million
plus subscribers in the
southern region bytheendofthis fiscal
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Tax on Sun direct DTH
Sales Tax
Income Tax
Entertainment Tax
Luxury Tax
Service Tax
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Sales Tax
Asales tax is a consumption tax charged at the point of purchase for
certain goods and services. The tax amount is usually calculated by
applying a percentage rate to the taxable price of a sale. A portion of
the sale may be exempt from the calculation of tax, because sales tax
laws usually contain a list of exemptions. Laws governing the tax may
require it to be included in the price (tax-inclusive) or added to the price
at the point of sale.
Most sales taxes are collected from the buyer by the seller, who remits
the tax to a government agency. Sales taxes are commonly charged onsales of goods, but many sales taxes are also charged on sales of
services. Ideally, a sales tax would have a high compliance rate, be
difficult to avoid, and be simple to calculate and collect.
SUN DIRECT DTH 4 or 12 % of sales tax depending upon sales in
regions
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4/26/2011 12
Income Tax
An income tax is a tax levied on the income of individuals orbusinesses (corporations or other legal entities). Various income tax
systems exist, with varying degrees of tax incidence. Income
taxation can be progressive, proportional, or regressive. When the
tax is levied on the income of companies, it is often called a
corporate tax, corporate income tax, or profit tax. Individual income
taxes often tax the total income of the individual (with somedeductions permitted), while corporate income taxes often tax net
income (the difference between gross receipts, expenses, and
additional write-offs). Various systems define income differently, and
often allow notional reductions of income (such as a reduction based
on number of children supported).
SUN DIRECT DTH 32% of income tax based on profit
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Entertainment Tax
In India, movie tickets, large commercial shows and large private festival celebrations
may incur an entertainment tax.
Entertainment falls in List 2 of the Seventh Schedule of the Constitution of India and
is exclusively reserved as a revenue source for the state governments. Historically,
before India acquired independence British government imposed heavy taxes on the
events of amusements and entertainment, where a large gathering of Indians could
have caused rebellion or mutiny. Thus, various entertainment tax acts of the state
governments permit the rate of tax beyond100%. After independence, old enactments
continued and there has been no revision or repeal of these acts.
This source of revenue has grown with the advent of Pay Television Services in India.
Since, entertainment is being provided through the services such as Broadcasting
Services, DTH Services, Pay TV Services, Cable Services, etc. The component of
entertainment is intrinsicially intertwined in the transaction of service, that it can not
be separated from the whole transaction. Given the nature of transaction of service, it
is being subjected to tax by the Union and the State governments both.
The fiscal principle underlying article 246 of the constitution of India separates the
sources of taxation for the Union and the States and also maintains the exclusivity.This article also provides that in case of conflict between the powers of Union and the
States, the Union power to tax shall supersede the power of the State to levy tax on
the taxable event or in relation to the subject or object of taxation.
The entertainment Industry in India is facing the challenge of double taxation on such
transactions.
SUN DIRECT DTH 10 or 25 % of entertainment tax on other states except tamilnadu
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Luxury Tax
Aluxury tax is a tax on luxury goods -- products not considered essential.A luxury tax may be modeled after a sales tax orVAT, charged as a
percentage on all items of particular classes, except that it mainly affects
the wealthy because the wealthy are the most likely to buy luxuries such as
expensive cars, jewelry, etc. It may also be applied only to purchases over
a certain amount; for instance, some U.S. states charge luxury tax on real
estate transactions over a limit.A luxury good may be a Veblen good, which is a type of good for which
demand increases as price increases. Therefore the effect of a luxury tax
may be to increase demand for certain luxury goods. In general, however,
since a luxury good has a high income elasticity of demand by definition,
both the income effect and substitution effect will decrease demand sharply
as the tax risesSUN DIRECT DTH 2% of luxury tax only in kerala
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Service TaxService Tax was introduced in India in 1994 by Chapter V of the Finance Act,
1994. The Central Board of Excise & Customs (CBEC), Department of
Revenue, Ministry of Finance, deals with the task of formulation of policy
concerning levy and collection of Service Tax. The CBEC is assisted by the
Directorate of Service Tax located at Mumbai. The Service Tax is being
administered by various Central Excise Commissionerate spread across the
country. The jurisdiction of each Commissionerate has been specified vide
Notf. No. 14/2002-CE(NT) as amended from time to time. However there are
six Commissionerates located at metropolitan cities of Delhi, Mumbai, Kolkata,
Chennai,Ahmedabad and Bangalore which deal exclusively with work related
to Service Tax. These Commissionerates are supervised by the jurisdictional
Chief Commissionerate of Central Excise. Each Commissionerate consists of
3 to 5 divisions with each division consisting of a number of range offices.
SUN DIRECT DTH 10.3% of service tax in DTH services
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Octroi taxes have a respectable antiquity, being known in Roman timesas vectigalia. These vectigalia were either the portorium, a tax on the
entry from or departure to the provinces (those cities which were
allowed to levy the portorium shared the profits with the public
treasury); the ansarium orforicarium, a duty levied at the entrance to
towns; or the edulia, sale imports levied in markets. Vectigalia were
levied on wine and certain articles of food, but it was seldom that thecities were allowed to use the whole of the profits of the taxes.
Vectigaliawere introduced into Gaul by the Romans, and remained
after the invasion by the Franks, under the name oftonlieuxand
coutumes.
SUN DIRECT DTH it is not expressed in percentage it is the amonut
that varies from place to place
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DTH: A flourishing
Industry in India
The DTH market today is less than 5% ofthe total TV market.
Populated by 4 players
Expected players
6 million DTH market double withreliance entry.
Players reach
New DTH brand
India's pay TV market 137mn -2012
DTH subscribers base-38mn-2012
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Strengths ForFuture
High growth chances.
Foreign technology.
Standard product.
Active news, active cooking, active
learning.
Language option.
Bargaining prices
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