Hotels to be taxed for DTH in every room

COIMBATORE: Hotels in Tamil Nadu will henceforth have to shell out an entertainment tax of 30 per cent for every room which has a television receiving signals from a DTH (Direct to Home) broadcasting service. Hoteliers say the decision will hit them hard considering the bevy of taxes already imposed on them.The Amendment to the Tamil Nadu Entertainments Tax Rules, 1939, which has been notified in the Gazette, says “In case of hotel or restaurant, each room or premises where signals of DTH broadcasting service are received shall be treated as a separate place of entertainment.” For that purpose, the proprietor of the hotel or restaurant shall be the subscriber for all the rooms or premises which receive the DTH signals.South India Hotels and Restaurants Association secretary T Natarajan rues the move. “As it is we have the highest luxury tax, VAT and every other tax. Already hotels are paying a huge amount to receive transmission rights for certain satellite television channels. The additional entertainment tax on DTH services provided in every room will add to our increasing costs,” he told Express. Terming the decision as retrograde, Natarajan, however, said that hotels are not in a position to transfer the additional cost burden on customers. “We can’t do that because the hotel industry is on the brink because of travel advisories issued by some country and the economic slowdown abroad,” he explained. However, he admits that hotels can’t switch to cable televisions either because “DTH is a great entertainer.” Meanwhile, as per the amended Entertainment Tax Rules, organisers of the Indian Premier League cricket matches (for which an ET of 25% would be imposed) will be required to submit a security deposit of  Rs 1 crore.