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Entertainment tax on clubs

 

Plea against entertainment tax dismissed

The Bench of Justice Hemant Gupta and Justice Rajesh Bindal today dismissed a bunch of petitions against entertainment duty filed bt the managements of various resorts in Haryana.

The petitiioners, Chrysalis India Private Limited and others, had contended they were offering swimming and other facilities, including billiards and pool. The issue before the court was whether such activities were liable to entertainment duty. (Source the tribune 30-8-08)

 

Question 1 : Whether entertainment tax in Punjab can be imposed on various types of functions held in these clubs like sutluj club, lodhi club, etc.

 

Ans: Entertainment tax can be levied on various types of functions held in such clubs. Please see the following judgements in this regard:-

 

1. Ritesh Garg vs. sutlej club (2004) 7 STM 464 (HC-P&H)

 

2. Order of DETC (Appeal), Patiala Division, Patiala (2004) 7 STM 464 in the case of sutlej club vs. the State of Punjab

 

3. Amit Kumar vs. State of U.P. (2008) 11STM 208 (S.C.)

Question 2 : If entry to such functions is on the basis of complementary passes and no

 

entry fee is charged, whether even then entertainment tax is leviable.

 

Ans. : If we study the judgment of Honourable Supreme Court mentioned above, it is very clear that even in such cases entertainment tax is leviable on the amount expended to hold such function.

 

CM waives tax on Naatshala
P. K. Jaiswar

Amritsar, June 29
Acceding to the prolonged demand of theatre lovers and artistes who have been fighting for the waiving off of the entertainment tax on live performing arts, Chief Minister Parkash Singh Badal in a rare gesture announced to exempt the Naatshala from entertainment tax.

He made this declaration while witnessing the play “Faasle” at the Naatshala here late last evening. He said he was so impressed with the efforts of Jatinder Brar who had selflessly made the Naatshala, which not only helped in saving theatre art and encouraging theatre artistes, but also played a vital role in generating a lot of theatre audience and lovers who regularly visit here. Theatres artistes from Amritsar were shocked when the sales tax authority raided the premises of the Naatshala to collect entertainment tax. A lot hue and cry was raised by theatre lovers. They had made strong representations to the authorities for the exemption of tax on theatre which was running on a no-profit-no-loss basis and small donations collected from artistes and art lovers.

Naatshala was founded by Jatinder Brar who was instrumental in reviving the live performing art in the holy city after a gap of several decades. It was his passion that created a wonderful Naatshala equipped with the latest gadgets and technical backup which has become a place of importance for visitors and tourists. Many budding artistes, schoolchildren and theatre legends have performed here.

Meanwhile, the Chief Minister announced Rs 10 lakh for the development of Naatshala and Rs 50,000 for artistes performing in a play written and directed by Jatinder.

Badal said theatre plays proved to be an important means for bringing in a considerable changes in the social setup by eradicating evils and producing a people’s consensus. “We should adopt this rich means to make a public opinion for creating a new social fabric.” (SOURCE: THE TRIBUNE 30-6-08)