Service Tax? Cinema Tickets - Taxable or Exempted? Is the Notification No.6/2015 correct?
AS per the existing Section 66D in the Finance Act, 1994, admission to entertainment events or access to amusement facilities, is under Negative List as per Section 66D(j).
Entertainment event is defined under Section 65B(24) as an event or a performance which is intended to provide recreation, pastime, fun or enjoyment, by way of exhibition of cinematographic film, circus, concerts, sporting event, pageants, award functions, dance, musical or theatrical performances including drama, ballets or any such event or programme.
Budget 2015 proposes to delete the clause 66D(j), that is admission to entertainment events, will no longer be under the negative list. The above mentioned clause 65B(24) is also to be omitted.
These changes will come into effect from a date to be notified after enactment of the Finance Bill.
Does it mean that there will be a Service Tax on the tickets for films, circus etc.?
Notification No. dated 20.06.2012, is amended by Notification No. dated 01.03.2015 to insert a new entry 47 which is as:
"47. Services by way of right to admission to,-
(i) exhibition of cinematographic film, circus, dance, or theatrical performance including drama or ballet;
(ii) recognised sporting event;
(iii) award function, concert, pageant, musical performance or any sporting event other than a recognised sporting event, where the consideration for admission is not more than Rs 500 per person.".
Now the doubt is whether the words where the consideration for admission is not more than Rs 500 per person apply to all the three items above or only to the third item?
Do they propose to tax film, circus, dance sports etc or do they want to tax only award functions, concert etc.?
Revenue officers, I talked to were of the opinion that all the three classes are to be taxed if the price of the ticket is more than Rs.500/-.
Will the Board clarify?