Supreme Court Upholds Entertainment and Service Tax on DTH Services
The Supreme Court ruled that state legislatures and Parliament can impose entertainment and service taxes on DTH services. The court deemed the broadcast of content as a taxable service, involving the transmission and decryption of signals. DTH operators argued unsuccessfully against the constitutionality of these taxes.

- Country:
- India
The Supreme Court has ruled that both state legislatures and Parliament are authorized to levy entertainment and service taxes on Direct-to-Home (DTH) services provided to consumers. The decision was delivered by a bench comprising Justices B V Nagarathna and N Kotiswar Singh.
The court clarified that broadcasting is a service that falls under the purview of service tax imposed by Parliament, aligning with the activity of entertainment outlined under Entry 62-List II of the Constitution. This entry addresses taxes related to luxuries, such as entertainment and amusements.
In delivering its verdict, the Supreme Court addressed a series of appeals challenging the constitutionality of these taxes. DTH operators contended that they should not be subject to entertainment tax, arguing that their role in broadcasting signals does not classify as entertainment. The court, however, upheld the taxation under the provisions of the Finance Act, 1994.
(With inputs from agencies.)