Govt exempts MSOs from service tax

NEW DELHI: Apparently buckling under pressure, the government has decided to exempt cable Multi-System Operators (MSOs) from the service tax net.

In a notification issued Friday, the government said the decision was taken in the public interest.

The proposal to bring the MSOs under the service tax net, as part of this year''s budget proposals, had seen the operators resorting to an indefinite strike on August 17, though it was called off just after 24 hours. The strikers had said they were calling off the agitation in view of the Olympics, though adding that if the government did not agree to their demand, the agitation would be revived.

The government''s decision has been welcomed by the MSOs. Virendra Gaur of the All-India Cable TV Forum, the body which had given the strike call, welcomed the decision. However, he said the government should also exempt last-mile operators from service tax.