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Friday, November 14, 2008

Dish TV prices STBs at Rs 1490, charges service tax on subscriptions

MUMBAI: Dish TV, which garnered 431,253 subscribers in the month of October to take its total customer base to 4.4 million customers, has introduced a host of pricing packages to keep up its growth momentum.

Dish TV is offering set-top box (STB) at Rs 1,490 along with which the consumer has a choice to select from multiple packs ranging from Rs 99 to Rs 275 per month.

The pack “Aapki Wish. Aapka Pack” allows freedom of choice to end users to customise their channel bouquet with maximum permutations and combinations.


Earlier in September, Dish TV had brought down the installation price from Rs 3,990 to Rs 1,990. Consumers had to pay Rs 1,990 and get a STB connection with 12 months subscription free.

In another value pack, Dish TV is offering a combo pack at Rs 2090 where the STB is bundled with the 'Platinum Pack' for three months with 165 channels and services.


Consumers have another option where they can select from a list of four tier packs – Silver, Gold, Diamond and Platinum. Silver pack offers 110 channels at Rs 111 while customers opting for the Gold pack get to watch 125 channels at Rs 180. The Diamond pack offers 140 channels at Rs 247 while Platinum pack comes for Rs 309 with 165 channels.

In another scheme, the direct-to-home service provider is offering more than 30 channels (a la carte packs) from Rs 15 to Rs 55.

Says Dish TV COO Salil Kapoor, “The new package offerings will offer our customers complete freedom of choice to customise channel packages."

Another departure from the current pricing model is the separate representation of service tax payable on monthly subscriptions. Reeling under intense pressure from multiple taxes by the Centre and the States, the tax element of DTH companies goes up as high as 40 per cent and includes service tax, entertainment tax, VAT and licence fee. Dish TV has decided to charge one component - the service tax directly from the subscribers and make the pricing transparent to that extent.

Says Dish TV managing director Jawahar Goel, “DTH industry is passing though a tough time due to burdensome multiple taxes by the Centre and the States and Dish TV has been providing considerable subsidies to consumer. Currently, the tax element of DTH companies includes service tax, entertainment tax, value added tax and license fee where as no other services are burdened with these many taxes. The subscribers are taxed entertainment tax on account of news content, that they are watching in the comfort of their home. The matter has been brought to the notice of I&B ministry and we hope that the government would rationalise the taxation structure on DTH and provide us some reprieve soon.”

Source: indiantelevision.com

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