Do you exactly know what Entertainment Tax is?

Tax is an integral and compulsory contribution by every individual to the nation’s revenue. It is one of the primary sources of income through which the government fulfills the need of the country. You must be well aware of various taxes like GST or income tax which are imposed on every individual of the country. No one really enjoys paying taxes but it is important to regularly reimburse a small amount of your income to help the government to run the nation.

You must have watched hundreds of movies out of which there must be a lot of movies which you have watched in the theatres. From buying tickets by standing in lines to booking your seats online, there has been a massive change in the way you go to watch movies. But did you ever notice a specific type of tax imposed on you when you go to the movies? Did you notice the entertainment tax on your movie or entertainment show tickets? So what exactly is that entertainment tax on your ticket?

What is Entertainment Tax?

All the transactions made financially for entertainment purposes like movie tickets, big private festivals, and large commercial shows are encompassed under the entertainment tax in India. The entertainment industry of India is obliged to pay taxes to the government as entertainment taxes.

Features of Entertainment Tax

There are several prominent features of this entertainment tax such as:

The entertainment tax imposed is collected by the State Government and they are the authorities responsible for it.

This tax is for all the forms of entertainment in any part of the country and is borne by the customers.

The guidelines provided for the entertainment tax mentioned in Article 246 of the Indian Constitution.

Entertainment in India varies from state to state falling under the influence of the State Government.

Television services that are paid like DishTV, Tata Sky, Airtel TV, etc. have resulted in the addition of the taxes imposed on the entertainment.

This tax started as a strategy by the British Government before Independence to curb and restrain public gatherings. But still, after Independence, entertainment tax continued to be imposed and still exists in India.

The gatherings and activities that come under the payments of entertainment tax are:

  • Theatre Shows
  • Exhibition
  • Amusement Parks
  • Celerity Stage Shows
  • Sports Activities
  • Video Games
  • Arcade

Entertainment Tax rates in  different states of India

As mentioned above, different states have different entertainment tax is imposed on them by the government. Since the collection of entertainment taxes is the responsibility of the government, it can vary from as low as 15% and can go as high up to 110%. The different entertainment taxes implied in various states are as follows:

 

  • Delhi – 20%
  • Uttar Pradesh- 60%
  • Jharkhand- 110%
  • Madhya Pradesh – 20%
  • Maharashtra – 45%
  • Bihar – 50%
  • Karnataka – 30%
  • West Bengal – 30%
  • Haryana – 30%
  • Andhra Pradesh – 20%
  • Assam – 15%
  • Tamil Nadu – 15%
  • Gujarat – 20%
  • Kerala – 30%
  • Rajasthan – 0%
  • Punjab – 0%
  • Himachal Pradesh – 0%
  • Jammu and Kashmir – 0%

These were the stats of the varying entertainment tax rates levied in the different Indian states.

Impact of GST on Entertainment Tax

GST not only brought a huge impact on every individual but also affected the entertainment industry in many ways. The entertainment tax was affected by GST to a noticeable extent.

After the launch of GST, the entertainment tax on a ticket costing Rs.100 or less than that will be 18%.

The tickets costing above Rs. 100 has a fixed entertainment tax of 28%. Though in many states this will increase the entertainment tax rates. But in states like Jharkhand with an entertainment tax of 110% and Uttar Pradesh with 60% prior to GST, it will now be decreased to 28%.

The GST rates regarding the entertainment tax have now been lowered even than the VAT and the Service Tax.

Now that you know about the entertainment tax, you can easily go through your tickets and see that nobody is charging you extra for their services or the entertainment for their services.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *