-
8/2/2019 Entertainment Tax in India
1/3
Prof.Nisar Merchant
AIAIMS
ENTERTAINMENT TAX IN INDIA
In India, entertainment tax is levied on every financial
transaction that is related to
entertainment such as movie tickets, major commercial shows and
big private festivals. As perthe Indian Constitution, entertainment
is included in List 2. This revenue is reserved primarily for
the state governments.
Following are some other forms of entertainment that are
included in the purview of
entertainment taxes:
Amusement parks
Video games
Arcades
Exhibitions
Celebrity stage shows
Sports activities
Entertainment Tax in India : OverviewIn the pre-independence
era, the British government levied huge taxes on events centered
on
entertainment or amusement. The basic idea was that there could
be a public rebellion at suchevents as they saw huge gathering of
Indians in a politically sensitive and critical time. These
laws are still in effect in some states and are yet to be
repealed or revised.
Contribution of Entertainment Tax in IndiaThe states have
started to generate higher incomes after the Paid Television
Services began in
India. At present there are some other sources through which
state governments get their
income tax related income:
Broadcasting services Pay TV services DTH services Cable
services
-
8/2/2019 Entertainment Tax in India
2/3
Prof.Nisar Merchant
AIAIMS
Entertainment Tax Rates in IndiaThe following entertainment tax
rates in the various states across India:State Entertainment tax
levied on gross ticket value
Maharashtra 45.00%
West Bengal 30.00%
Gujarat 20.00%
Assam 15% for the tickets worth than less INR 20 and 20% for
tickets worth more than
20 rupees
Delhi 20.00%
Orissa 25.00%
UttarPradesh
60.00%
Bihar 50.00%
Punjab 0.00%
Jharkhand 110.00%
Haryana 15%. Tamil language films are exempted from
entertainment taxes.
Tamil Nadu 15%. Tamil language films are exempted from
entertainment taxes.
Andhra
Pradesh
20%. In case of Telugu films the applicable rate is 15%.
Kerala 30.00%
Jammu and
Kashmir
0.00%
Rajasthan 0.00%
Himachal
Pradesh
0.00%
Madhya
Pradesh
20.00%
Implementation of Entertainment Tax in IndiaIn India the aspect
of entertainment is an intrinsic part of several transactions and
services - this
is done in such a way that the matter cannot be separated from
the service or transaction itself.
-
8/2/2019 Entertainment Tax in India
3/3
Prof.Nisar Merchant
AIAIMS
Entertainment Tax in India - Collecting Authorities
In India, state governments are primarily responsible for
collecting the entertainment taxes.
However, the union government can also collect these taxes on
the basis of the type of
transaction.
The basic financial principle, which separates the entertainment
taxes to be collected by the
union government and ones under the jurisdiction of the state
government, is mentioned in the
Article 246 of the Indian constitution. This part also
highlights the entertainment taxes that can
be collected by the union governments and the states.
The article also states that in case there is a conflict between
the Union Government and the
State Governments regarding an entertainment tax, the Union will
have greater power in
imposing the tax.
