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US putting pressure on India to ease its television downlink policy

By APP

New Delhi : The United States has been putting pressure on India to ease its difficult television downlink policy for the international service providers. Media reports quoting an official here said Washington had been raising the issue with New Delhi government by describing the present downlink policy as burdensome and taxable for foreign content providers.

Under the present rules, the global content providers are required to open an office in India or operate through a local agent—a process which makes their operations taxable in India.

The US said if India desires to oversee the contents of the programme, it can do so through its licensed entities like cable operators or direct-to-home providers without requiring them to open office in the country.

The Indian Ministry of Information and Broadcasting had enforced a ‘Downlink Policy’ in November, 2005 despite opposition from the international firms.

The Information Ministry rejecting the plea of the global content providers ruled out any change in the policy in February this year asking them to amend their agreements with the Indian customers making the tax liabilities retrospective in nature from November 11, 2005.

This action has upset the US which has started putting pressure on India to ease the policy, the official added.