Chapter II ENTERTAINMENT TAX AND BETTING TAX AUTHORITIES

(1) For carrying out the purposes of this Act, the Government shall, by notification, appoint a person to be the Commissioner of Entertainment and Betting Tax. (2) To assist the Commissioner in the execution of his functions under this Act, the Government may appoint as many Deputy Entertainment Tax and Betting Tax Commissioners, Entertainment and Betting Tax Officers, Additional Entertainment and Betting Tax Officers, Assistant Entertainment and Betting Tax Officers, Inspectors, Sub-Inspectors and such other persons with such designations as the Government thinks necessary. (3) The Commissioner shall have jurisdiction over the whole of the National Capital Territory of Delhi and the other person(s) appointed under sub-section (2) shall have jurisdiction either over the whole of the National Capital Territory of Delhi or such areas or subjects as the Commissioner may specify. (4) The Commissioner appointed under sub-section (1), and other officers appointed under sub-section (2) shall exercise such powers as may be conferred, and perform such duties, as may be required, by or under this Act.

(1) The Government may, by notification, delegate all or any of its powers under this Act, except those under sections 3, 6, 7 and 45 to any person or authority subordinate to it. (2) The exercise of any powers delegated under sub-section (1) shall be subject to such restrictions, limitations or conditions as maybe laid down by the Government from time to time and shall also be subject to control and revision by Government at any time.

The Government shall as soon as may be after the commencement of this Act, appoint and notify an authority to be called the "appellate authority" to exercise the powers and discharge the functions conferred on the appellate authority by or under this Act.

(1) Subject to the provisions of this Act, there shall be levied and paid on all payments for admission to any entertainment, other than an entertainment to which section 7 applies, an entertainment tax at such rate not exceeding one hundred per cent of each such payment as the Government may from time to time notify in this behalf, and the tax shall be collected by the proprietor from the person making the payment for admission and paid to the Government in the manner prescribed. (2) Nothing in sub-section (1) shall preclude the Government from notifying different rates of entertainment tax for different classes of entertainment or for different payments for admission to entertainment. (3) Where the payment for admission to an entertainment together with the tax is not a multiple of fifty paise, then notwithstanding anything contained in sub-section (1) or sub-section (2) or any notification issued thereunder, the tax shall be increased to such extent and be so computed that the aggregate of such payment for admission to entertainment and the tax is rounded off to the next higher multiple of fifty paise, and such increased tax shall also be collected by the proprietor and paid to the Government in the manner prescribed. (4) If in any entertainment, referred to in sub-section (1), to which admission is generally on payment, any person is admitted free of charge or on a concessional rate, the same amount of tax shall be payable as if such person was admitted on full payment. (5) Where the admission to a place of entertainment is generally on payment, and if any entertainment is held in lieu of the regular entertainment programme without payment of admission or with payment of admission less than what would have been paid in the normal course, the proprietor shall be liable to pay tax which would have been payable in a normal course at full house capacity or the tax for the programme held in lieu of the regular entertainment programme, whichever is higher. (6) Where the payment for admission to an entertainment, referred to in sub-section (1), is made wholly or partly, by means of a lump sum paid as subscription, contribution, donation or otherwise, the tax shall be paid on the amount of such lump sum and on the amount of payment for admission, if any, made otherwise. (7) Where in a hotel or a restaurant, or a club, entertainment is provided by way of cabarets, floor shows, or entertainment is organised on special occasion along with any meal or refreshment with a view to attract customers, the same shall be taxed at a rate to be notified under sub-section (1).

(1) Subject to the provisions of this Act, there shall be levied and paid an entertainment tax on all payments for admission to an entertainment through a direct-to-home (DTH) or through a cable television network with addressable system or otherwise, other than entertainment to which section 6 applies, at such rates not exceeding rupees six hundred for every subscriber for every year as the Government may, from time to time, notify in this behalf, which shall be collected by the proprietor and paid to the Governemnt in the manner prescribed. (2) Nothing in sub-section (1) shall preclude the Government from notifying different rates of entertainment tax for household, or for different categories of hotels. (3) Where the subscriber is a hotel or a restaurant; the proprietor may, in lieu of payment under sub-section (1), pay a compounded payment to the Government on such conditions and in such manner as may be prescribed and at such rate as the Government may, from time to time, notify and different rates of compounded payment may be notified for the different categories of hotels.

(1) No entertainment on which tax is leviable shall be held without prior information being given to the Commissioner in the manner prescribed. (2) No proprietor of a cable television network or video cinema or Direct-to-Home (DTH) shall provide entertainment unless he obtains permission from the Commissioner in the manner prescribed. (3) Notwithstanding anything contained in this Act or any other law for the time being in force, the Commissioner, or any other officer authorised by the Government in this behalf, may after giving reasonable opportunity of hearing to the proprietor, prohibit the holding of such entertainment and may also take all reasonable steps to ensure that order of prohibition is complied with, if he is satisfied that— (a) the proprietor has given any false information which is likely to result in the evasion of tax; (b) the proprietor has failed to deposit the security due; (c) the proprietor has committed breach of any of the provisions of this Act or the rules made thereunder.

Save as otherwise expressly provided by or under this Act, no person (other than a person who has some specific duty to perform in connection with the entertainment, or duty imposed upon him by law, or a person authorised by the Government in this behalf) shall be admitted to any entertainment except with a ticket in the prescribed form denoting that the proper tax payable under section 6 has been paid.

No person (other than a person who has some specific duty to perform in connection with the entertainment, or duty imposed upon him by law, or a person authorised by the Government in this behalf) shall enter or obtain admission to an entertainment without being in possession of a proper ticket as required under section 9.

The Government may, on such conditions as may be prescribed, require the proprietor, to pay the amount of the tax payable under section 6. (a) by stamping the tickets with an impressed, embossed, engraved or adhesive stamp, issued by the Government for the purpose, denoting that the proper entertainment tax payable under section 6 has been paid; or (b) in accordance with returns of the payments for admission to the entertainment and on account of tax; or (c) by a consolidated payment of a percentage, to be fixed by the Government, of the gross sum received by the proprietor on account of payments for admission to the entertainment and on account of the tax; or (d) in accordance with results recorded by any mechanical contrivance which authormically registers the number of persons admitted.

(1) Where the Commissioner is satisfied that the proprietor has deposited tax in excess of the amount actually due, he shall grant a refund in respect of such amount or allow its adjustment against future payments to tax. (2) When an entertainment is not completed for reasons beyond the control of the proprietor, and the Commissioner is satisfied that the proprietor has refunded the amount charged for the tickets, he shall remit the amount of tax payable in respect of such tickets and order the show to be treated as cancelled.

(1) Every proprietor before holding an entertainment on which tax is leviable shall deposit such security and in such manner as may be prescribed. The Commissioner may deduct any arrears of tax from the security and may vary or forfeit the security in such manner as may be prescribed. (2) No order to forfeit the security shall be made under sub-section (1) unless, after giying the proprietor reasonable opportunity of being heard, the Commissioner is satisfied for reasons to be recorded that the proprietor has evaded the tax or violated the provisions of this Act or rules made thereunder. (3) Any person aggrieved by an order forfeiting the security may, within thirty days from the date of service of such order prefer an appeal to the appellate authority in such manner as may be prescribed and the order of the appellate authority shall be final.

(1) The Government may, for promotion of arts, culture or sports, by general or special order, exempt any individual entertainment programme or class or entertainments from liability to pay tax under this Act. (2) The Government may, by general or special order, exemptin public interest any class of audience or spectators from liability to pay tax under this Act. (3) Without prejudice to the generality of the provisions of sub-section (1) where the Government is satisfied that any entertainment,— (a) is wholly of an educational character; or (b) is provided partly for educational or partly for scientific purposes by a society not conducted or established for profit; or (c) is provided by a society not conducted for profit and established solely for the purpose of promoting pubic health or the interests of agriculture, or a manufacturing industry, and consists solely of an exhibition of articles which are of material interest in connection with questions relating to public health or agriculture or are the products of the industry for promoting the interest whereof the society exists, or the materials, machinery appliances or foodstuff used in the production of such products, it may, subject to such terms and conditions as it may deem fit to impose, grant exemption to such entertainment from payment of tax under this Act: PROVIDED that the Government may cancel such exemption if it is satisfied that the exemption was obtained through fraud or misrepresentation, or that the proprietor of such entertainment has failed to comply with any of the terms or conditions imposed or directions issued in this behalf and thereafter the proprietor shall be liable to pay the tax which would have been payable had the entertainment not been so exempted. (4) Where the Government is satisfied that the entertainment programme is not conducted for profit and the entire gross proceeds from payment for admission as defined in clause (1) of section 2 of an entertainment are to be devoted to philanthropic, religious or charitable purposes, without any deductions whatsoever on account of the expenses of the entertainment, it may, subject to the rules made under this Act, grant exemption to such entertainment from payment of tax under this Act on such terms and conditions as it may deem fit to impose. (5) Where any exemption from payment of tax is granted under sub-section (4), the proprietor of such entertainment shall furnish to the Commissioner such documents and records and in such manner as may be prescribed. (6) If the proprietor of an entertainment exempted under sub-section (4) fails to furnish the documents and records required under sub-section (5), or fails to comply with any conditions imposed or directions issued in this behalf, or if the Government is not satisfied with the correctness of such documents or records, the Government may cancel the exemption so granted and thereupon the proprietor shall be liable to pay the tax which would have been payable had the entertainment not been so exempted. (7) The Government may for reasons to be recorded in writing grant ipso facto exemption from payment of entertainment tax in respect of any programme.

(1) Where the assessing authority is satisfied that the proprietor of an entertainment— (a) has failed to give information or take permission as required under sub-section (1) or, as the case may be, under sub-section (2) of section 8; or (b) has failed to submit true and full returns in the prescribed form; or (c) has printed, distributed, possessed, sold or used duplicate tickets; or (d) has fraudulently evaded or attempted to evade, the payment of tax due in any manner whatsoever, it shall, after giving the proprietor a reasonable opportunity of being heard, assess to the best of its judgment, the amount of the tax due from the proprietor, and may also impose a penalty not exceeding two times of the tax due. (2) The amount of tax assessed by the assessing authority shall, together with any penalty that may be directed to be paid, be paid by the proprietor within a period of fifteen days from the date of service of notice of demand issued by the assessing authority. (3) Any person aggrieved by an order under sub-sections (1) and (2) may, within one month from the date of service of such order, prefer an appeal to the Commissioner in such manner as may be prescribed. (4) An appeal shall lie from an appellate order of the Commissioner passed under sub-section (3) to the appellate authority within one month from the date of service of such order, in such manner as may be prescribed, and the order of the appellate authority shall be final.

(1) Notwithstanding anything contained in section 56 of the Indian Assessment Act, 1882, a ticket for admission to an entertainment shall not be resold for profit. (2) No person shall sell, resell or purchase any ticket for admission to a cinematograph exhibition in respect whereof tax is payable under section 6, except from the enclosure set apart by proprietor for the purpose and in such manner as may be prescribed.

(1) The Commissioner or any other officer authorised in this behalf by the Commissioner or by the Government, may, with such assistance as may be necessary; enter, inspect and search arty place of entertainment while the entertainment is proceeding, and any place ordinarily used as a place of entertainment or for keeping records connected therewith, at any reasonable time with a view to securing compliance of the provisions of this Act or the rules made thereunder. Explanation : The expression "place of entertainment" in case of a cable service means the place from where the cable television network is operated. (2) Any officer referred to in sub-section (1) may require the proprietor, society or any person involved in payment for admission to produce for inspection before him or any other officer not below the rank of sub-Inspector, all details of account and other records relating to the entertainment as such officer may consider necessary. (3) Any officer referred to in sub-section (1) or sub-section (2) may take in his possession all such books of accounts and other records relating to the entertainment as he may consider necessary and shall give a receipt giving list of the documents and records taken in possession. (4) The proprietor of such place of entertainment shall give every reasonable assistance to every officer referred to in sub-sections (1) and (2). (5) Every officer referred to in sub-sections (1) and (2) shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.

(1) No proprietor having a licence under the Cinematograph Act, 1952 (Central Act 37 of 1952) shall charge payment for admission and collect entertainment tax without an authorisation to be called 'admission fee and tax collection authorisation certificate' from the Commissioner. (2) The Commissioner may, by order, revoke or suspend that authorisation certificate issued under sub-section (1) if he is satisfied that the proprietor has— (a) admitted any person to any place of entertainment without payment of tax; or (b) failed to pay the tax or deposit security due from him within the time prescribed; or (c) fraudulently evaded the payment of any tax due under this Act; or (d) obstructed any officer in carrying out inspection, search or seizure of records; or (e) failed to produce the records required for inspection by any officer carrying out an inspection under this Act; or (f) contravened any other provision of this Act or the rules made thereunder or any order or direction issued under any such provision. (3) No order to revoke or suspend the 'admission fee and tax collection authorisation certificate' under sub-section (1) shall be passed without giving the holder of such certificate a reasonable opportunity of being heard. (4) Any person aggrieved by an order, revoking or suspending the 'admission fee and tax collection authorisation certificate' under sub-section (2) may, within one month from the date of communication of such order, prefer an appeal to the appellate authority in such manner as may be prescribed and the order of the appellate authority shall be final. (5) Where any 'admission fee and tax collection authorisation certificate' granted under sub-section (1) has revoked or suspended under this section, the Commissioner shall have the power to prevent such entertainment and may, for this purpose, take such steps as he may consider necessary in the circumstances of the case.