TataSky pays Rs 383 cr licence fee on gross revenue basis

TataSky today paid Rs 383 crore to the government as licence fee for the previous fiscal and arrears even as DTH operators and government are locked in litigation over licence fee structure.
The company said it submitted a demand draft of Rs 383 crore to the Ministry of Information and Broadcast (MIB). This amount covers licence fee for the year 2013-14 as per the rate specified for licence as well as past dues, for which the Ministry had raised a demand note recently.
"This payment is without prejudice to the court ... We would wait for the outcome of the order," TataSky CEO and Managing Director Harit Nagpal told PTI.

At present, the dispute between the various DTH operators and the government is still pending before the broadcast tribunal TDSAT.
"We hope that this will end the long standing dispute on the subject and pave the way forward for a constructive rationalisation of taxes with the support of our parent Ministry," Nagpal said.
The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) would hear the matter next month.

As per norms, a DTH operator has to pay around 10 per cent of their gross revenue to the government as their annual licence fee.
However, the DTH operators are contending that the MIB should charge licence fee based on adjusted gross revenue left after paying several taxes and others.

The government had in March issued notice to six operators asking to pay around Rs 2,000 crore as licence fee by April. It was challenged by them before the TDSAT.