MUMBAI: DTH service provider Tata Sky has been directed by the Gujarat High Court to deposit entertainment tax for the quarter ended June. This is in accordance with the demand set forth by the Gujarat state government.

A bench of Chief Justice S.J. Mukhopadhaya and Justice Anant Dave told the company to deposit the tax amount and added that it would be subject to the final outcome of the petition.
 
Earlier, another division bench which took up the case, directed the company to deposit the tax amount for the January-March quarter.

Tata Sky had approached the High Court challenging an amendment to the Gujarat Entertainments Tax Act by the government which enables the state to levy tax on companies broadcasting entertainment channels, according to IANS. 
 
The company contended that it was paying service tax for the DTH broadcast and it could be considered as a service but not an entertainment provider.

The advocate general appearing on behalf of the state contended that in a similar matter, the Supreme Court held that operators are liable to pay the entertainment tax, the IANS report ed.

The matter has been kept for final disposal on 23 November.