Entertainment Tax on events across various cities

Entertainment Tax on events across various cities

Entertainment tax rates on events across various cities in India

Event organizers have to cross many hurdles for executing an event. Most important of all taxes is entertainment tax.

Entertainment tax is mostly levied on each and every financial transaction that is related to entertainment such as major commercial shows, movie tickets, music concerts, and big private entertainment festivals.

Entertainment tax rate on events across various cities in India

Various forms of entertainment falls under the ambit of taxation.

1. Arcades
2. Exhibitions
3. Celebrity Stage Shows
4. Sports Events
5. Amusement Parks
6. Video and Online Cyber Games

The state government is the major beneficiary of this revenue and the local authorities will also earn their share of the tax.

Entertainment tax has to be paid upfront to the authorities concerned. The organizer has to estimate the sale of approximate number of tickets and pay the tax. If the total number of tickets sold are less than the number of tickets on which the tax is paid, refund can be claimed and the authorities return the money in 60 days from the date of claim.

Entertainment tax on events

As entertainment tax is a State subject, it varies from State to State and also the respective State Governments alter the percentage of tax from city to city too.

Entertainment Tax Rates in India

The Entertainment tax rates on events in various cities across India are as follows:

Entertainment tax rates in India

Live show tickets in Mumbai, such as dance programmes, western music, music concerts, fashion shows and exhibitions will have only 25% of entertainment tax on basic ticket price. This was actually pegged at 49 per cent earlier, but reduced now. And there will be no surcharge and tax on sponsorship.

There will 100% exemption of entertainment tax if the shows are held in the interior parts of the Maharashtra and 20% would be levied for live entertainment shows conducted outside Mumbai. The government has also waived off the tax levied on “complimentary tickets”. So, from now onwards, the organisers will be taxed only for the ticketed income.

Supposing, a programme is organized only for the invitees which is fully sponsored and no tickets are sold, then the organiser will be charged an entertainment tax of 25% in Mumbai. Similarly, the organiser has to pick up this bill.

Entertainment tax varies from city to city and state to state. So entertainment tax should be under a single slab so that the organizers are not burdened by paying huge sum of taxes.

Preeti Panna Mishra

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