Entertainment tax was launched during the rule of the British Government in India. This was introduced in order to restrain public gatherings. And the entertainment tax still continues to be imposed in all states of India.
Entertainment tax comes under the ambit of the state governments. Therefore, the entertainment tax varies from state to state in India. It comes under the category of indirect tax.
Entertainment tax is levied by the state government on movie tickets, sports events, concerts, exhibitions, etc. Entertainment tax is a part of the various costs borne by customers.
State governments are responsible for collecting entertainment tax from consumers.
Important features
- Entertainment tax varies from state to state as it comes under the purview of the state governments
- Article 246 in the Indian constitution mentions all the information about entertainment tax.
- Chargeable television services such as Dish TV and Airtel DTH have caused further taxes to be imposed on entertainment.
- These services are also included under entertainment tax:
- Exhibitions
- Sports activities
- Amusement parks and water parks
- Arcades
- Celebrity concerts
State-wise entertainment tax-rate
Jharkhand—110 per cent
Uttar Pradesh—60 per cent
Bihar—50 per cent
Maharashtra—45 per cent
Karnataka—30 per cent
Kerala—30 per cent
West Bengal—30 per cent
Haryana—30 per cent
Orissa—25 per cent
Delhi—20 per cent
MP—20 per cent
Gujarat—20 per cent
Andhra Pradesh—20 per cent
Assam—15 per cent (on tickets less than Rs 20)
Tamil Nadu—15 per cent (Tamil films are free of tax in the state)
Rajasthan—0 per cent
Jammu & Kashmir—0 per cent
Himachal Pradesh—0 per cent
Punjab—0 per cent
Note: Entertainment tax was replaced by the Goods and Services Tax (GST) applicable from July 2017.
Different kinds of taxes are imposed on the purchase and sale of goods and services by an individual or a business.
Income tax is collected on income earned by individuals and consortium.
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