Top Story


Home >> Media - Others >> Article

I&B Ministry for tax exemption to Prasar Bharati

Font Size   16
I&B Ministry for tax exemption to Prasar Bharati

Restoring Section 22 to the Prasar Bharati Act is expected to figure in the Budget wishlist of the information and broadcasting (I&B) ministry. If granted, this would exempt the public broadcaster from paying service tax, which is currently pegged at 8 per cent.

Although several rounds of negotiations took place between I&B and finance ministries on this issue during the NDA regime, no decision was taken to restore Section 22. But, as pre-budget deliberations begin first week of June, the I&B ministry is gearing up with its demand all over again, according to a senior ministry official. However, I&B minister S Jaipal Reddy is yet to approve the wishlist.

According to Section 22 of the Prasar Bharati (Broadcasting Corporation of India) Act, 1990, it was exempted from payment of income tax or any other tax. As per the interpretation of Section 22, it was held that the corporation was not liable to pay any service tax also. But, since private broadcasters were in the service tax net, the 2002 budget sought to level things out. The Finance Act 2002, through section 153, omitted Section 22 of the Prasar Bharti Act, bringing the pubcaster on par with others.

In its presentation to the Central Board of Direct Taxes (CBDT), a few months ago, Prasar Bharati had even sought tax exemption on its income, by claiming to be a charitable institution under Sections 11 and 13 of the Income Tax Act, 1961.

Prasar Bharati CEO KS Sarma had confirmed the move. The corporation had reasoned at that point, that Prasar Bharati is a public broadcaster and a non-commercial venture. Also, its annual expenditure stood at Rs 1,900 crore, while its earnings were only Rs 685 crore in 2002-03.


In this week's chillout, Gupta shares her weekend routine that not only helps her deal with the high stress of corporate life but also allows her to create some cherished memories. Read on…

NP Singh, CEO of Sony Pictures Networks India, talks of SPN’s growth drivers, pay wall for content, sharing IP and more…

The future of the industry will be 1:1 advertising as traditional channels, like television, become more addressable: Bryan Kennedy, Epsilon

The Founder of Pocket Aces shared his insights on how the consumption of content has evolved and how digital media is growing as the preferred medium of entertainment.

Nikhil Kumar will report to Paritosh Srivastava, COO, Publicis India

On the back of resounding success of its maiden work for Motilal Oswal, Mullen Lintas has introduced a sequel in different settings; again, reinforcing the image of Motilal Oswal as ‘Experts in Equity...

Sony Ten 1 took over Star Sports 1 Hindi to lead the sports genre with three of its properties making it to the Top 5 Programs for BARC Week 46