All India Radio and Doordarshan have been brought into the service tax net, even though the state-run broadcasters will continue to be out of direct tax purview as envisaged in the Prasar Bharati Act.
The Central Board of Excise and Customs said that Section 22 of Prasar Bharati Act applies only in respect of taxes on income or profit or gains of boradcaster, and not on service charges received from advertisements and serials.
Since the regional offices or "kendras" of AIR and DD collect the service charges, CBEC said, "The regional offices will have to be registered for payment of service tax and for complying with other procedural formalities."
Apart from AIR and DD, foreign satellite channels and Indian cable channels are also brought under service tax net.
Foreign satellite TV channels, which may be located outside India, but are operating in the country through branch offices, subsidiary companies and agents, sell time slots and recover service charges.
"These branch offices, subsidiaries and agents are rendering the service in relation to braodcasting and therefore, are liable to pay the service tax and comply with all other procedural formalities," CBEC said.