Copyright thehindu
The Tamil Nadu government has partially revoked its decision and exempted drama from the ambit of the entertainment tax imposed by local bodies. The Municipal Administration and Water Supply Department has exempted drama conducted on the premises of any institution or in any other places from the liability of entertainments tax payable under the Tamil Nadu Local Authorities Entertainments Tax Act, 2017. The State government had in December last year tabled a Bill in the Assembly that sought to levy and collect a 10% entertainment tax for concerts, dramas, shows, or any other event conducted by an institution on payment for admission. The House adopted the Bill that month and the Governor granted his assent to the legislation in April this year. While moving the Bill, the State government said that the 2017 Act provided for local bodies to levy and collect tax on certain specified entertainment and amusement events, but there was no enabling provision for levy and collection of entertainment tax on concert, dramas, show, or any other event conducted by any institution, including an educational institution, on payment for admission. The legislation also brought about suitable provisions for levy and collection of entertainment tax for these events also ‘at the rate of 10% on each payment for admission’. The AIADMK had opposed the Bill when it was moved in the House.
