SC upholds states’ power to levy entertainment tax on DTH, cable services

The Supreme Court on Thursday upheld the constitutional validity of entertainment tax imposed by state governments on cable and Direct-to-Home (DTH) television services.

A Bench comprising Justices BV Nagarathna and N Kotiswar Singh ruled that states have the legislative authority to tax the entertainment component of such services, even if the broadcasting function is already subject to service tax by the Union government, Bar and Bench reported.