“Delhi government has directed SITI Cable Network Limited, an Essel Group Company, with Subhash Chandra as its chairman on the board of directors and CEO, to deposit Rs 33.12 crore as its outstanding entertainment tax for two years, along with interest and penalty within 15 days,” an official said.
The assessment of the company, providing digital cable services in Delhi, has revealed that it was indulging in major entertainment tax fraud since April 2013. It has been found that this company has committed a serious illegal act of tax evasion by duping the government, despite having collected the
amount in the name of taxes from customers.
This company has been collecting entertainment tax from 5, 36,616 customers at the rate of Rs 20 a month. In the financial year, 2013-14, SITI Cable has collected around Rs 13 crore in the name of entertainment tax from its customers. However, it only deposited Rs 4.63 crore as entertainment tax for this financial year.
It is clear that this company simply pocketed the remaining Rs 8.32 crore, which should have been deposited on a monthly basis in the government exchequer. Taking cognizance of the fraud, the government has levied a 100 per cent penalty of Rs 8.32 crore and an interest of Rs 3.06 crore under the Delhi Entertainments and Betting Tax Act 1996.
The complete assessment including additional tax, penalty and interest for the financial year 2013-14, which this company now has to pay stands at Rs 19.71 crore. The company had continued evading tax during the financial year of 2014-15 also.
The government has assessed the tax, interest and penalty for 2014-15 at Rs 13.41 crore.
SITI Cable has been directed to pay a total of Rs 33.12 crore to the government by April 22. The government is also examining the records of other MSOs providing cable services in the national Capital to ensure there are no similar tax frauds, the official added.
The assessment of the company, providing digital cable services in Delhi, has revealed that it was indulging in major entertainment tax fraud since April 2013. It has been found that this company has committed a serious illegal act of tax evasion by duping the government, despite having collected the
amount in the name of taxes from customers.
This company has been collecting entertainment tax from 5, 36,616 customers at the rate of Rs 20 a month. In the financial year, 2013-14, SITI Cable has collected around Rs 13 crore in the name of entertainment tax from its customers. However, it only deposited Rs 4.63 crore as entertainment tax for this financial year.
It is clear that this company simply pocketed the remaining Rs 8.32 crore, which should have been deposited on a monthly basis in the government exchequer. Taking cognizance of the fraud, the government has levied a 100 per cent penalty of Rs 8.32 crore and an interest of Rs 3.06 crore under the Delhi Entertainments and Betting Tax Act 1996.
The complete assessment including additional tax, penalty and interest for the financial year 2013-14, which this company now has to pay stands at Rs 19.71 crore. The company had continued evading tax during the financial year of 2014-15 also.
The government has assessed the tax, interest and penalty for 2014-15 at Rs 13.41 crore.
SITI Cable has been directed to pay a total of Rs 33.12 crore to the government by April 22. The government is also examining the records of other MSOs providing cable services in the national Capital to ensure there are no similar tax frauds, the official added.