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Delhi government proposes collection of entertainment tax after events
September, 04th 2015

To ease procurement of license for entertainment events, the Delhi government has proposed not to collect entertainment tax before any function from the organisers and has given permanent licenses to 23 auditoriums.

According to a senior government official, the government is also in the process of bringing entertainment tax, fire and electricity under the purview of a single-window clearance.

"Soon a nodal officer will be appointed for creation of a single-window licensing process which will give a boost to ease-of-doing-business and events in the city," he said.

As per the official, event organizers will be able to hold ticketed events in the city without submitting any entertainment tax before the event.

"Tax as per the ticket sale can be deposited after the completion of the event. Earlier, this was to be done prior to ticket-selling permissions being given," the officer said.

Due to stringent licensing process in Delhi, most of the big concerts, including international acts, were being held in Gurgaon and Noida. No big show/concert was recently held in the national capital.

Event and Entertainment Management Association (EEMA) had held several meetings with the Delhi government with regard to the issue and had been demanding that steps be taken to make the city best destination for entertainment events.

"Soon permanent license for holding an event will be issued to 23 auditoriums. These venues can be used at the time of any cultural programme or musical function.

"Change in the entertainment tax depositing framework for EEMA members is certainly a big gift to the industry. The number of ticketed and corporate events in the city is surely to see an increase," EEMA Treasurer Rajeev Jain said.

Earlier members of EEMA had also highlighted the issue of corruption allegedly faced by them while organising an event.

"We face corruption at several steps while conducting any event. To hold an event in Delhi, we have to give 20 to 30 per cent of passes free for VIP entry," an EEMA member said.

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