Dish TV regards recovery of tax report baseless, stock down 1.4%
Shares of DTH provider Dish TV slipped over 2% in early trade on reports that the company has paid lower tax for last fiscal year.
By ET Online | Updated:
NEW DELHI: Shares of DTH provider Dish TV slipped over 2% in early trade on reports that the company has paid lower tax for last fiscal year.
“Tax officials feel the company by understating its tax liability actually ended up paying less tax than other DTH players with lesser number of subscribers,” said the media report.
“News reports today are completely unfounded – the company is yet to file its IT return for 2010-11, hence the reports on payment of less tax is completely baseless,” said RC Venkateish, CEO, Dish TV, in an interview with ET Now.
Commenting on the issue of license fee, Venkateish said, “Payment of 10% of gross revenue, the matter has been challenged and the revenue basis for determination of license fee is subjudised in the Supreme Court.”
License fee is the amount paid annually by a DTH licensee company to the government. It is around 10% of the gross revenue earned in a fiscal year.
The company has provided for 10% license fee, according to the TDSAT (Telecom Disputes Settlement and Appellate Tribunal) order. In the meantime, the differential between the original license fee and TDSAT order has been provided in the books as current liability and is reflected in the balance sheet, clarified the management.
AT 12:03 pm, shares of the company were trading 1.4% lower at Rs 80.30. For the month of August the stock is down a little over 5%.
“Tax officials feel the company by understating its tax liability actually ended up paying less tax than other DTH players with lesser number of subscribers,” said the media report.
“News reports today are completely unfounded – the company is yet to file its IT return for 2010-11, hence the reports on payment of less tax is completely baseless,” said RC Venkateish, CEO, Dish TV, in an interview with ET Now.
Commenting on the issue of license fee, Venkateish said, “Payment of 10% of gross revenue, the matter has been challenged and the revenue basis for determination of license fee is subjudised in the Supreme Court.”
License fee is the amount paid annually by a DTH licensee company to the government. It is around 10% of the gross revenue earned in a fiscal year.
The company has provided for 10% license fee, according to the TDSAT (Telecom Disputes Settlement and Appellate Tribunal) order. In the meantime, the differential between the original license fee and TDSAT order has been provided in the books as current liability and is reflected in the balance sheet, clarified the management.
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AT 12:03 pm, shares of the company were trading 1.4% lower at Rs 80.30. For the month of August the stock is down a little over 5%.
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