Power of State Government to exempt or reduce tax

(1) The State Government may, by notification, make an exemption of any tax or reduction in the rate of any tax payable under this Act, in respect of entertainments held in newly constructed cinema theatres situate within the limits of any specified local authority or class of local authorities.

1. (2) Exemption of any tax or reduction in rate of any tax notified under sub-section (1), may be subject to such conditions and restrictions as may be specified in the notification.
2. (3) The State Government may, by notification, cancel or vary any notification issued under sub-section (1).
3. (4) If any condition or restriction specified in the notification issued under sub-section (1) is contravened or not observed by a proprietor, the entertainments held in the cinema theatres in respect of which such contravention or non-observance took place, be assessed to tax or taxes, as if the said notification did not apply to such entertainments.]1

¹ Inserted by Act 15 of 1996 w.e.f. 5.9.1996.