The Delhi government on Tuesday directed Essel Group owned Siti Cable Network Limited to deposit Rs 33.12 crore as outstanding entertainment tax for two years, along with interest and penalty within 15 days.
According to an official of the Delhi government, the company has been committing major entertainment tax fraud since 2013.
"The company has been collecting entertainment tax from 5,36,616 customers at the rate of Rs.20 per month and had earned around Rs.13 crore as entertainment tax in 2013-14 but deposited only Rs.4.63 crore as tax."
"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."
The Delhi government has levied a 100 percent penalty on Rs.8.32 crore and an interest of Rs. 3.06 crore under the relevant provisions of 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 to the government, stands at Rs.19.71 crore.
Similarly, it has been found that SITI Cable continued tax evasion 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.
