RE:Kej Delhi government has directed Siti Cable Network Limited, an Essel Group Company, with Mr Subhash Chandra as its chairman of 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.
The assessment of this Multi System Operator (MSO) company providing digital cable services in the National Capital Territory of 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 its innocent customers.
This company, through its local cable operators has been collecting entertainment tax from 5,36,616 (five lakh thirty six thousand six hundred and sixteen) customers at the rate of Rs 20 per month.
In the financial year, 2013-14, SITI Cable has been found to have 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 Delhi government has levied a 100 % penalty of 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.