The Department regulates the entertainment activities in the N.C.T. of Delhi as per the provisions of The Delhi Entertainments and Betting Tax Act., 1996.
As per section 2(i) of the DEBT Act 1996, the following activities come within the ambit of the DEBT Act 1996 :-
i) Any Exhibition
v) Sport of race ( including horse race)
vi) Cinematographic Exhibitions.
As per section 6 of the said Act ,Entertainment Tax shall be leaved and paid on all payments for admission to any Entertainment. The liability to collect entertainment tax from the patrons and to deposit the same with the Government lies with the proprietors / organizers of entertainments.
Further section 2 (m)(iv) says that 'payment for admission' includes any payment, by whatever name called for any purpose whatsoever, connected with an entertainment, which a person is required to make in any form as a condition af attending.
The Entertainment Tax Department under the Commissionerate is considered to be one of the important source of revenue for the Govt of Delhi. The department's equally contribution is promotion of Indian arts, culture, and also sports by granting entertainment tax exemption.
It is mandatory to obtain permission from the Department before organizing any entertainment programme in NCT of Delhi. All venue owners including Hotels, Restaurants, Clubs, Halls, Auditorium, Stadiums and other venue are required to collect a copy of NOC issued from this department before permitting their premises for any Entertainment Programmes.
Categorization of the entertainment programmes are given below:-
I Tax Paid Programmes:
Where entry to an entertainment is through priced tickets , the patron/proprietor of entertainment has to pay entertainment tax at the rate of 15% on the admission price of each ticket. The organizer of the programme has to obtain prior permission from the Department upon making an application in the prescribed Form-5 and alongwith supporting documents by depositing full house tax as security in advance.
II Invitee Programmes:
Where entry to a programme is only through invitation cards, an application has to be made by the organizers in Form-6 alongwith an affidavit of the organizer, a sample of the invitation card and the details of the invitees.
III Tax Exampted Programmes:
The Government grants entertainment tax exemption from the payment of entertainment tax for the conduct of entertainment programmes where the objective to conduct such programme is to be promote art, culture,sports and programmes for philanthropic, charitable or religious and educational purposes. This requires an application to be made in Form-14 alongwith a copy of the certificate of registration of the applicant Society/Trust , the audited Balance Sheets of the previous three years, printer’s certificate of the entry card and information about the core activities of the Society/Trust.
In addition , the Government of N.C.T. of Delhi has granted permanent exemption from the payment of entertainment tax to all those Societies which are registered in Delhi under the Societies Registration Act, 1860 as well as those Trusts which are registered with the Commissioner, Income Tax in Delhi, for the purpose of organizing drama performances including plays, ballets, puppetry shows etc. To avail of such exemption, the registered Societies/Trusts should be primarily engaged in the promotion of Indian art, culture or literature . The Government has also granted permanent exemption from the payment of entertainment tax to magic shows and circus performances provided prior information of the same is given to the department and 50% discount on the price of the tickets is given to school students on the production of identity cards , in respect of circus performances .
The Government also accords tax exemption to cinematographic films that won national and international awards and the films that fulfill certain laid down norms.
Bowling Alley : An Entertainment Tax Source
Inspite of granting liberal exemptions, the revenue collection by the department has been increasing every year.
IV Amusement Parks / Video Game Parlours ETC:
Amusement parks , video game parlours , bowling alleys and billiards/pool joints also come within the ambit of the Entertainment Tax Department. All these entities are required to obtain prior permission from this Department before commencing their operations. Patrons have to pay entertainment tax at the rate of 15% of the admission charges for gaining entry to these entertainment venues except video game parlours where the rate of tax is Rs.50/- per machine per week in case of a token of Re.1/- is used.
All children below 17 years of age, wearing school uniforms or carrying valid school Identity Cards have been exempted from the payment of entertainment tax for facilities used in fun parks in National Capital Territory of Delhi
V. Cable Television Networks :
Entertainment also includes entertainment through cable service and this industry is the second major source of entertainment tax. The proprietors of cable television networks are liable to pay entertainment tax at the rate of Rs.20/- per subscriber per month. The hoteliers providing cable service in their rooms have to pay tax at the rate of Rs.50/- per room per month. Further, obtaining the permission of the Commissioner, Entertainment Tax, is mandatory for operating a cable television network and for providing cable service in hotels or guest houses.
VI. Betting Tax :
Government also receives revenue from the Delhi Race Course where betting on horse racing in respect of both on-course and off-course races takes place. Bets can be placed by the general public either with the bookmakers or in computers which are called totalizators .The stewards of the Club are responsible for collecting betting tax at the rate of the 15% and for depositing the same with the Department in cases where people place bets at the totalizators. For bets placed with the bookmakers, the bookmakers are responsible for collecting and depositing betting tax at the rate of 10% on all sums of money placed by way of bets with them.
VII. Tax on Cinemas
Tax on Cinemas as is a major source of revenue collection under entertainment tax Department. Department Collects more than 80% entertainment tax from cinemas only every year. In Delhi at present 57 cinema halls are under operation in these there are 25 Multiplexes having more than one screens Altogether there are 128 Screens / Audis are functioning in Delhi.
Cinema Halls : Major Entertainment Tax Source
To impart ease and efficiency to tax collection, use of information technology is being liberally used. Use of the Computerised ticketing in the cinema halls with online data transmission to the Entertainment department is also taking place Due to Modern Communication fecilities.
To download the forms prescribed under various rules click below
- Form 5
- Form 6 (Prescribed under rule 11)
- Form 14 (Prescribed under Rule 36)
- Cases granted exmption U or S 14 of the Delhi Entt. and Betting Tax
- Application for NOC for an Invitee Entertainment Programme
- Application for exemption from Entertainment Tax
- Check List for request of Grant of exemption from payment of Entertainment Tax
- Aspects for consideration of a feature film for Entertainment Tax exemption
The Last date of Payment of Cable Tax is 7th of following month i.e 7th May for April.
For other specific details, kindly contact the Entertainment Tax Officer
Excise, Entt. & Luxury Tax Department,
L-Block, I.P. Estate,
New Delhi-110 002
Phone : 23370947
Email : email@example.com
Last Update Date :- 16-03-2018
Page last updated on: 13-02-2020