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More trouble for Doordarshan as it gets notice from AAP govt over slot sale

The notice was sent under section 59 of the DVAT Act, 2004 by the department of trade and taxes of the Delhi govt.

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The cash-strapped public broadcaster Doordarshan may be in for further trouble. With an eye on increasing its revenues, the Aam Aadmi Party government in Delhi has sent a notice to the public broadcaster asking it to provide details of its agreements with the different customers on the sale of time slots from 2012 till date and the corresponding invoices and other payment details for this period.

The notice, which was sent under section 59 of the DVAT Act, 2004 by the department of trade and taxes of the Delhi government, has sought the details from the Prasar Bharati by June 29. It also stated that the public broadcaster may have to pay a penalty of Rs50,000 and that action as per section 89(4) of the DVAT Act may also be taken if the information was not furnished within the stipulated time.

The notice comes at a time when the Prasar Bharati had invited applications for a new policy on its sale of prime time slots, a change from its earlier Self Financed Commission (SFC) scheme, to generate additional revenue for Doordarshan. Prasar Bharati, on its part, has sought an extension of the date to file its reply. According to sources, sale of time slots is covered under right to use goods and hence attracts value-added tax under the DVAT Act, 2004 and that the act also calls for registration of the dealer.

"We have sought details of all transactions made by Prasar Bharati in terms of sale of slots in the last few years to check if they have VAT dues with us," a senior official from Delhi government said, when asked about the notice. "Prasar Bharati may have to pay the Delhi government the required tax of 12.5 per cent for each transaction of the slots," the official added.

In 2009, the Karnataka High Court had asked Antrix Corporation, the commercial arm of Indian Space Research Organisation (ISRO), to pay 25 per cent of the VAT levied on it by Commercial Tax Department, the cumulative amount of which, between year 2005 and 2009 was nearly 201 crore.

An official from Doordarshan admitted to have received the notice and said it is being examined before a final reply is filed. The Delhi government had taken cue from this order while seeking tax on its slot sale from Doordarshan. The move might trigger a fresh round of clashes between the AAP government and Prasar Bharati which is funded by the Centre.

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