 Entertainment tax in India signifies the tax paid by the entertainment industry in India

 Entertainment activities include in theater shows, games, amusement parks

 The entertainment tax department looks after the tax payable for the entertainment activities
being performed in various places across the country

 The entertainment tax department is located in Delhi

 It works under the stipulation of The Delhi Entertainment and Betting Tax Act, 1996

 One of the highest revenue earning sectors from tax in entertainment industry is cinema
Industry

 25 – 30 % of the ticket cost includes the entertainment tax according to the class
 The entertainment tax in India is levied upon the
organizers or proprietors depending on the kind of
shows being organized.

 There are a range of tax schemes for various

entertainment programs. These are as follows:

 Tax schemes designed for amusement parks

 Tax-paid programs
 Programs based on tax exempted sectors
 Tax programs on cable television networks
 Tax for various invitee programs
 Tax on entertainment betting
 Tax on video parlors
 All the licenses are issued for a calendar year, and must be renewed by
the 31st of December of respective year

 For new license for the Theatres the following documents are
required:

› Registration Fees
› Certificate for Electric Fitting
› Film Division certificate
› Certificate issued by Medical Officer
› Certificate from P.W.D.
› Lighting Conductor certificate.
› Fire Extinguishing set certificate.
› Certificate for availability of telephone
 Entertainment tax is divided into 4 categories
› Tax on Talkies
› Tax on Cable Operators
› Tax on Video Parlour
› Tax on other Entertainment sources
 Collector
 Additional collector
 Residential Dy. Collector
 District Entertainment Duty Officer
 Entertainment Duty Inspector
 Clerk
 Cable Connections
Rate per cable Rate per DTH
Area
connection connection

Municipal corporation Rs 45 Rs 45

A & B class municipal

Rs 30 Rs 30
council
C class municipal
Rs 15 Rs 15
council

 Video coach
› For video coach buses the tax of Rs 1000 is paid
every year
 The Tamil Nadu Entertainment Tax Act, 1939
provides for levy of entertainment tax in cinema
theaters.
 Until 1978 the entertainment tax was levied on
the basis of 'admission system'
 Entertainment tax levied to the theatre which are
located in surroundings on control of municipal
corporation
 VAT tax is exempted for film industry instead
entertainment tax is being imposed on them
 The state governments were already charging
entertainment tax on the film of 25 %
 In addition to it 5.2 % of service tax is being imposed
 30 % tax is being imposed totally to this industry
 Tamil Nadu government has subsidized entertainment
tax if the name is kept in Tamil
 Now IPL matches are screened in theatres
 For eg: if the total ticket collection is Rs 60
crores, theatre would have to pay 25 % of it as
entertainment tax, which is 15 crores
 The state government has decided to add cricket to the
entertainment list.
 While the quantum of tax for matches held in
Mumbai will be 25 per cent
 The tax was not applicable to
› Test matches
› Ranji trophy
› school cricket.
 The tax is applicable to all one-day international
matches, IPL 20-20 cricket
 SCHEDULE  A
Section 3
(a) On payment for admission not exceeding Rs. 50/-. Nil

(b) On payment for admission exceeding Rs. 50/- but not 20% of the amount paid for
exceeding rs. 100/-. admission

(c) On payment for admission exceeding Rs. 100/- 30% of the amount paid for
admission

2. A horse race either live or displayed for viewing through 30% of the amount paid for
any electronic media connected with the help of server admission plus 10% of the
application or otherwise, to which persons are admitted on amount charged for betting.
payment.
 SCHEDULE  B

1. River/boat cruise 15% of the amount

paid for admission.
2. Water sports or jet skiing or boat rides, Rs. 2500/- per
parasailing motor cart rides or any other boat per annum.
similar activities of entertainment.
3. Motor cart rides, where the payment for 15% of the
admission per person, per ride, exceeds amount paid for
Rs. 100/-. admission.
 SCHEDULE  C
(i) Providing entertainment through antennae and Rs. 10/- per month
cable television or antennae. per connection.
(ii) Providing entertainment through cable television Rs.15/- per month per
exclusively. connection.
(iii) Headend control room/distributors Rs. 10 per connection.

(iv) Providing entertainment by way of cyber café and Five paise in a rupee of
pool parlour. the amount charged for
  admission.

(v) Providing entertainment by way of DTH Disc Rs. 20/- per connection
services
 SCHEDULE  D
(a) By casino and casino games Rs. 2000/- per person visiting the place of
attached to hotels registered casino plus 10% of the sale of chips/coins
under the Goa Tax on Luxuries or  the receipts received by the
Act, 1988 (Act 17 of 1988). proprietor/operators towards casino
games either on slot machine or table
games or any other games provided in the
casino.
(b) By casino and casino games Rs. 2000/- per person visiting the place of
attached to off shore or floating casino plus 10% of the sale of chips/coins or 
vessels the receipts received by the
proprietor/operators towards casino games
either on slot machine or table games or any
other games provided in the casino.
 SCHEDULE  E
(i) Multiplexes Rs. 10,000/-
(ii) Cinema halls or theatres other than multiplexes in Rs 5,000/-
municipal areas/ city corporation of Panaji area

(iii) Cinema halls or theatre in other areas Rs. 2,500/-

(iv) Horse races whether live or otherwise Rs. 2,500/-
(v) Casinos/casino games attached to hotels registered Rs. 5,000/-
under the Goa tax on Luxuries Act, 1988 (Act 17 of
1988)
(vi)  Casinos/casino games on the floating off shore vessels Rs. 10,000/-

(vii) Cable television and/or antennae operators having Rs. 1,000/-

connections not exceeding 100

(viii) Cable television and/or antennae operators having more Rs. 2,500/-
than 100 connections but not exceeding 500
connections
(ix) Cable television and/or antennae operators having Rs. 5,000/-
connections exceeding 500
 The Gujarat government has proposed to levy an
entertainment tax on Direct to Home (DTH).
 At present, entertainment tax is being levied on
cable TV, which is a source of entertainment for
the poor and middle class people in urban as well
as rural areas who pay this tax for the same.
 Direct-to-Home (DTH) subscribers in Delhi have
been brought under the entertainment tax regime
in Delhi.
 The residential DTH subscribers will have to pay
Rs 20 more per connection on a monthly basis .
 The Association rules that the exorbitantly
charged entertainment tax by some states.
 “West Bengal, Punjab and Gujarat charge
entertainment tax at 20%, 40% and 25%
respectively, whereas the entertainment tax rate
hovers around 5-15% in majority of the states,”.