Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: empanelment :: VAT RATES :: form 3cd :: ACCOUNTING STANDARDS :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: cpt :: ACCOUNTING STANDARD :: TDS :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: list of goods taxed at 4%
 
 
« Service Tax »
 Parliament Winter Session: Govt keen on proper discussion on GST Bills
 Service Tax revision to make digital content expensive: Here’s how it will impact you
 GST Council may reduce tax slabs in future: CBEC chief
 Govt to waive service tax on card transactions up to Rs 2,000
 Recovery Of Tax Under Model Gst Law
 Income Tax officials hunt for Mumbai’s ‘ghost’ assessee
 GST delay to impact Budget
 If GST not rolled out by Sept, there won't be taxation in country, warns Jaitley
 India’s E-Service Tax Will Add To Foreign Content Providers’ Woes
 GST Council to discuss model laws, tax jurisdiction today
 Tax Invoice Under GST

DTH services, IPL matches brought under entertainment tax net
October, 07th 2011

The State government has brought Direct To Home (DTH) services and cricket matches organised by Indian Premier League (IPL) into the entertainment tax net.

Theatres will have to pay double the tax on every film screen for each ticket but cinema goers will not bear the brunt.

A Bill passed by the Assembly on Wednesday included DTH services and IPL cricket matches within the definition of the term entertainment to levy tax under Tamil Nadu Entertainments Act, 1939.

The six companies providing DTH services in the State will have to pay 30 per cent of gross charges as entertainment tax, excluding service tax, to the government, based on their subscription base.

If the DTH provider charges Rs.100 for a connection, then the company will have to pay Rs.30 as entertainment tax. This is excluding sales tax, an official explained.

Officials promised that customers would not be charged but were apprehensive that the DTH provider could pass on the burden to them.

Doubts were raised in a few other States claiming that DTH was a Central service and questioning how States could levy entertainment tax, and there has been litigation. As of now, court verdicts have favoured the State governments' classification of DTH under entertainment, officials explained.

Bringing the highly successful IPL into the tax net, the government has chosen to levy 25 per cent of the payment for admission, inclusive of the amount of tax, to any of the cricket matches. For instance, if a ticket costs Rs.1,000, then the organisers would have to pay Rs.250 as entertainment tax, officials clarified.

About half-a-dozen States have drawn the IPL into the entertainment tax net.

The government hopes to net Rs.100 crore annually by bringing DTH services and IPL matches under tax net.

It has increased basically doubled the rate of tax for admission to any cinematography exhibition in a theatre under Tamil Nadu Entertainment Tax (Second Amendment) Act, 2011.

At present, it charges 15 per cent from ticket charges as entertainment tax for new films screened in the 10 corporations and 22 municipalities. The tax is 10 per cent in other areas. For screening of old films, it is 10 per cent tax throughout the State.

After the passing of the Bill, which came into force at once, the tax rate in corporations and municipalities for screening new films has doubled to 30 per cent. For new films screened in other areas and for old films, the entertainment tax has doubled to 20 per cent.

However, this will not affect cinema goers as there is a cap on ticket charges, officials said. In Chennai, multiplexes could charge only Rs.120.

Now theatre owners would have to pay 30 per cent, Rs.36 per ticket, instead of Rs.18 they were paying till now, as entertainment tax. But, theatres would not be able charge the customer more because of the cap.
{Ad}

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions