Now, IPL, DTH in tax net

CHENNAI: The Indian Premier League’s (IPL) hugely popular 20-20 cricket matches and the providers of Direct to Home (DTH) satellite television services are now taxable at the rate of 25 per cent and 30 per cent respectively in Tamil Nadu.The Tamil Nadu Assembly on Wednesday amended the Tamil Nadu Entertainment Tax Act, 1939, to facilitate levying tax on the IPL and the DTH in Tamil Nadu. The amendment comes into force with immediate effect.Minister for Commercial Taxes and Registration Agri SS Krishnamoorthy moved the amendment bill [TN Entertainment Tax Second Amendment Bill, 2011] and it was adopted without any discussion.The bill said that the 1939 entertainment legislation does not have any provision to levy tax in respect of entertainment provided by the DTH and cricket tournaments organized by the IPL. To mop up additional revenue, the government has also decided to increase the tax on cinema tickets, the bill added. However, the amendment bill did not specify details related to it. As regards IPL matches, complimentary tickets issued in excess of two per cent of the seating capacity of the stadium shall also be taxable. The tax on DTH services will be calculated at the rate of 30 per cent of the gross [service] charges — excluding the service tax — received by the provider of the service.