alexa
Home Articles Entertainment Tax in India

Entertainment Tax in India

IndianMoney.com Research Team | Updated On Saturday, January 05,2019, 05:13 PM

5.0 / 5 based on 1 User Reviews

Entertainment Tax in India

 

 

Entertainment Tax in India:

Entertainment taxes are a part of indirect taxes, imposed by the Government. The government imposes taxes to collect revenue to pay for the services provided like roads, park, security and so on. Entertainment taxes are imposed by the Government on various entertainment related aspects like movie tickets, film festivals, commercial shows, DTH service and so on.

Want to know more on investment planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

SEE ALSO: How is Term Insurance Premium Calculated?

Entertainment Tax in India

Features of Entertainment Tax in India:

Outlined below are the main features of entertainment taxes:

  • The entertainment taxes were introduced by the British Government during the pre-independence era to reduce public gatherings.
  • The entertainment taxes are collected by the State Government from the people.
  • Entertainment taxes differ across states as they depend on the discretion of the State Government.
  • These taxes are applicable in some or the other form to entertainment related industries across India. The entertainment taxes are mainly charged on tickets at various stage shows, movies, and amusement parks.
  • Article 246 of the Indian Constitution states the various rules and regulations that pertain to entertainment tax in India.
  • Entertainment taxes also include the charges paid towards DTH connection.
  • Entertainment taxes are applicable on the following forms of entertainment:
  1. Theatre shows
  2. Stage shows
  3. Video game arcades
  4. Amusement parks
  5. Exhibitions
  6. Sport related activities

SEE ALSO: EPF Member Passbook: Login, How to Download And Activation

Entertainment Tax Rates Applicable to Various States in India:

The entertainment taxes are imposed by State governments and different States have different rates of Entertainment Tax. The percentage of entertainment tax that is imposed in a state is at the discretion of the state government. The table below summarises the entertainment tax applied by various state governments:

Name of the state

Rate of tax

Uttar Pradesh

60%

Bihar

50%

Maharashtra

45%

Karnataka

30%

Kerala

30%

West Bengal

30%

Haryana

30%

Orissa

25%

Delhi

20%

Madhya Pradesh

20%

Gujarat

20%

Andhra Pradesh

20%

Assam

15% for tickets > Rs. 20

20% for tickets < Rs. 20

Tamil Nadu

15% ( all Tamil films are tax free in the state)

Jharkhand

10%

Rajasthan

0%

Himachal Pradesh

0%

Jammu and Kashmir

0%

Punjab

0%

Impact of GST Rates on the Entertainment Industry:

The table below shows the current tax rates that are applicable on the entertainment sector after the implementation of GST from July 2017:

Types of entertainment

Tax rates

Theatre

Drama and Indian classical dance

circus

18%

Film festivals and movies

Amusements parks

Race

Casino and video games arcades

sport events like IPL

28%

SEE ALSO: What Is A Good Credit Score?

Frequently Asked Questions

What is the entertainment tax?

Entertainment tax is a type of indirect tax levied by the Government on the entertainment sector. These taxes apply to commercial shows, private festivals, movie releases and are deducted from the gross collection. It is also imposed on movie tickets, tickets for IPL matches, amusement parks and also DTH connections. 

Is entertainment tax considered as a direct tax?

Entertainment tax is a type of indirect tax. Indirect taxes are imposed on goods and services and as entertainment is a type of service provided, it’s listed under the indirect tax category. The direct taxes are those that are levied on the income of a person.

How much is tax on movie tickets?

In multiplexes and theatres, the movie ticket ends up attracting 28% GST. Additional taxes are also levied on the foods and beverages sold in these multiplexes.

What is entry tax in India?

Entry tax is levied on the movement of goods from one state to another. The tax is imposed by the state governments and is levied by the recipient state to protect the tax base.

What is the maximum deduction for meals and entertainment?

In most cases, the entertainment tax that can be deducted is 50%. However, a person can deduct only 50% of the meal cost in case they are for entertainment purposes, but cannot deduct if they are for the purpose of business travel.

You May Also Watch:

Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.

Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.

Be Wise, Get Rich.

 

Related Articles

 

Did you find this article useful? You can Rate us
5.0 / 5 based on 1 User Reviews
Article Author

IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
CIBIL Meter
Get It now!
Attention!

This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.