Mobile cos in MP dispute payment of entertainment tax

Indore, November 30: Mobile phone companies here have disputed the imposition of entertainment tax on them by the state government, prompting Madhya Pradesh State Excise Department to send notices to the defaulters on the issue.

“During the recent drive against those not paying entertainment tax, the department issued notices to four mobile companies asking them to provide details of customers to whom they were providing different entertainment-related services,” Assistant Excise Commissioner Vinod Raghuwanshi told PTI here today.

However, the companies refused to provide the details on the ground that they did not come under the purview of entertainment tax, he said.

As per the law which was amended four months back, the companies providing entertainment-related services are liable to pay 20 per cent tax on the income generated through such services to the government, the official said.

–Agencies