The Mizoram Entertainment Tax Act, 2013

NOTIFICATION No. H. 12018/83/2013-LJD, the 30 th April, 2013. The following Act of the Mizoram Legislative Assembly, which received the assent of the Governor of Mizoram is hereby published for general information. The Mizoram Entertainment Tax Act, 2013 (Act No. 4 of 2013). { Received the assent of the Governor of Mizoram on the 17th March, 2013} AN ACT to mobilize additional resources for the public revenue of the State of Mizoram and for the purpose of levying and collection of tax on entertainments and other amusements. WHEREAS it is considered necessary to make an addition to the public revenue of Mizoram and for that purpose to impose a tax on entertainments and other amusements. It is enacted by the Legislature of the State of Mizoram in the Sixty-Fourth Year of the Republic of India, as follows:- PRELIMINARY 1 .Short title, extent and commencement: (1)This Act may be called the Mizoram Entertainment Tax Act, 2013. (2)It shall extend to the whole of the State of Mizoram. (3)It shall come into force from the date of their publication in the Mizoram Gazette.

2 .Definitions: –In this Act, unless there is anything repugnant in the subject or context, –

( a )“Admission”includes admission as a spectator or as one of an audience, and admission for the purpose of amusement by taking part in an entertainment; ( b )“Admission to an entertainment” admission to any place in which the entertainment is being held or is to be held and where television exhibition is being provided with the aid of any type of antenna with a cable network attached to it or cable television in residential or non- residential areas for which persons are required to make payment by way of contribution or The Mizoram Gazette EXTRA ORDINARY Published by Authority

• • 2 -Ex-217/2013 subscription or installation and connection charges or any other charges collected in any manner, whatsoever. ( c )“Agriculture” includes horticulture and livestock breeding; ( d )“Antenna” means an apparatus which receives television signals which enables viewers to tune into transmissions including national or international satellite transmissions and which is erected or installed for exhibition of films or moving pictures or series of pictures by means of transmission of television signals by wire where subscriber’s television sets at the residential or non-residential place are linked by metallic coaxial cable or optic-fibre to a central system called the head-end, or a tuner or a similar device which enables Direct To Home [DTH] transmission of television signal on payment by the connection holder of any contribution or subscription or installation and connection charges or any other charges collected in any manner, whatsoever; ( e )“Cable service” means the transmission by cables of programme including retransmission by cable of any broadcast television signal; ( f )“Cable Television” means a system organised on payment by connection holder of any contribution or subscription or installation and connection charges or any other charges collected in any manner whatsoever, for exhibition of films or moving pictures or series of pictures by means of transmission of television signals by wire where subscriber’s television set is linked by metallic coaxial cable or optic-fibre cable to a central system called the head-end, by using a video cassette or disc or both, recorder or player or similar such apparatus on which pre- recorded video cassette or disc or both are played or replayed and the films or moving pictures or series of pictures which are viewed and heard on the television receiving set at a residential or non-residential place of a connection holder; ( g )“Cable Television network” means any system consisting of a set of closed transmission paths and associated signal generation, control and distribution equipment designed to provide cable service for reception by multiple subscribers; ( h )“Casual Show” means and includes any exhibition, performance, amusement, game, sport, music, cultural and dramatic performance or any other entertainment of occasional nature performed or held for a continuous period not exceeding seven days with or without break and to which persons are admitted for payment; ( i)“Commissioner” means the Commissioner of Taxes appointed under Section 3 or the officer empowered thereunder to discharge the functions of such authority; (j)“Direct To Home (DTH) Service” Direct To Home Service [DTH] means a service for multi-channel distribution of programme direct to subscribers’ premises by up-linking to a satellite system. ( k )“Entertainment” means and includes any exhibition, performance, amusement, game, sport, cinematograph show or video show to which persons are ordinarily admitted on payment or moving pictures or series of pictures which are viewed and heard on the television receiving set, with the aid of any type of antenna with a cable network attached to it or cable network or Direct To Home [DTH] service for which persons are required to make payment by way of contribution or subscription or installation and connection charges or any other charges collected in any manner whatsoever; ( l)“Live-stock” means and includes animals of every description;

( m) “Payment for admission” means and includes –

(i)any payment made by a person who having been admitted to one part of a place of entertainment is subsequently admitted to another part thereof, for admission to which a payment involving a tax or a higher rate of tax is required; (ii)any payment for seats or other accommodation in a place of entertainment; (iii)any payment made for the loan or used of any instrument or contrivance which enables a person to get a normal or better view or hearing of the entertainment which, without the aid of such instrument or contrivance, such person would not get;

• • 3 -Ex-217/2013 (iv)any payment for any purpose whatsoever connected with an entertainment which is required to make as a condition of attending or continuing to attend the entertainment in addition to the payment, if any, for admission to the entertainment; (v)any payment made by a person by way of contribution or subscription or installation and connection charges or any other charges collected in any manner whatsoever for television exhibition with the aid of any type of antenna with a cable network attached to it or cable television; ( n )“Prescribed” means prescribed by rules made under this Act; ( o )“Proprietor” in relation to any entertainment means the owner and shall also include manager, organiser and any person responsible for, or, for the time being, in charge of the management thereof; ( p)“Society” includes a company, institution, club or other association of persons by whatever name called; ( q )“State Government” means the State Government of Mizoram; (r)“Subscriber” means a person who receives the signals of cable television network or of direct to home service at any place indicated by him without further transmitting to any other person. In case of hotels, each room or premise where signals of cable television network or of direct to home service are received shall be treated as a subscriber. ( s )“Tax”means entertainment tax levied under this Act; ( t )“Ticket”means a ticket or a complimentary pass for the purpose of securing admission to an entertainment in accordance with the provisions of this Act. ( u )“Video cinema” means any place where exhibition of cinematograph film or moving pictures or series of pictures in public, organised by playing or replaying of pre-recorded cassette by means of a video cassette player or recorder either on the screen of a television set or video- scope or otherwise is provided for commercial purpose. ( 3 )Taxing Authority:–The State Government may for carrying out the purposes of this Act, appoint a person to be Commissioner or empowered, by notification in the official Gazette, any official to discharge the functions of such authority.

(4)Delegation of Commissioner’s power:–Subject to such restrictions and conditions as may be prescribed, the Commissioner may, by notification in the official Gazette, delegate any of his powers under this Act to any official and any such official shall thereupon exercise the said power.

5 .Tax on payments for admission to entertainment: –

(1)Except as otherwise expressly provided in this Act, there shall as from the date on which this Act comes into force, be charged, levied and paid to the Government of Mizoram a tax, hereinafter referred to as the entertainment tax, on all payment for admission to any class of entertainment, at the rates specified below: – (a)In the case of games, sports, music or dramatic performances organised by any person, association, body or society – five per centum of such payment; (b)In the case of cinematograph exhibition, where the payment for admission is – (i)Rupees ten or less – Nil. (ii)Rupees fifty or less but more than rupees ten – 10 per centum of such payment. (iii)More than rupees fifty – 20 per centum of such payment. (c)In the case of Casual show other than those covered by clause (a), – ten per centum of such payment; (d)In any other case – ten per centum of such payment. Provided that there shall not be charged, levied and paid to the State Government any tax where the highest payment for admission does not exceed rupees ten.

• • 4 -Ex-217/2013 Explanation : – The rate of tax shall be charged and levied on the payment for admission excluding the tax and if the amount of tax so arrived at is not a multiple of one rupee, it shall be rounded to the next higher multiple of one rupee. (2)The Commissioner may, on the application of a proprietor of any entertainment in respect of which the entertainments tax is payable under sub-section (1), allow the proprietor on such conditions as it may be prescribed, to pay the amount of the tax due by means of a consolidated payment of twenty per centum of the gross sum received by the proprietor on account of such payments for admission to the entertainment and on account of the tax. (3)The entertainments tax, in the case of theatre, cinematograph exhibitions and circus and any other class of entertainments which the Commissioner may direct, shall be charged, levied and paid with effect from the date on which this Act comes into force. (4)Levy of entertainment tax on complimentary passes or tickets: – Entertainments tax shall be charged, levied and paid on all free or complimentary passes or tickets by whatever name called, issued by the proprietor, exhibitor or organiser of the entertainments in respect of admission without payment to a seat or other accommodation therein. (5)The liability to pay entertainments tax shall be on the proprietor of the entertainment. (6)The State Government may, by notification in the Official Gazette, vary the rates of tax under this Act and on such notification being issued, the rate of tax shall be deemed to have been amended accordingly: Provided that the rate of tax to be specified or varied by the State Government in respect of any class of entertainment shall not exceed fifty per centum of the existing rate. 6 .Levy of entertainment tax on Cable Television and Direct To Home [DTH] Service:– (1)Notwithstanding anything contained in Section 5, the proprietor of a cable television network providing cable service and of the direct to home (DTH) service shall be liable to pay entertainment tax at the rate of twenty rupees per subscriber per month. (2)Nothing in sub-section (1) shall preclude the State Government from notifying different rates of entertainment tax for household or for the different categories of hotels. 7 .Admission to entertainments:–No person shall be admitted to any entertainment where the payment for admission is subject to the entertainment tax, except – (a)In case of cinematograph exhibition with a ticket stamped with an impressed, embossed, engraved or adhesive stamp (not before use) issued by the State Government for the purpose of revenue and denoting that the proper entertainment tax has been paid; (b)in the case of cable television and direct to home (DTH) service where the entertainment tax shall be due and recoverable from the proprietor; (c)in special case with the approval of the Commissioner through a barrier which, or by means of a mechanical contrivance which, automatically registered the number of persons admitted, unless the proprietor of the entertainment has made arrangements approved by the Commissioner for furnishing returns of the payments for admission to the entertainment and has given security upto an amount and in a manner approved by the Commissioner for the payment of the entertainment tax; (d)in the case of cinematograph exhibition unless the proprietor of the entertainment has made arrangements approved by the Commissioner for furnishing returns of payments for admission to the entertainment and also returns of admission to seat or other accommodations without payment or free or complimentary passes or tickets and has given security upto an amount and in a manner approved by the Commissioner for the payment of the entertainment tax. Provided that the provisions of this Section shall not apply to the proprietors and the officer of the Government on duty.
• • 5 -Ex-217/2013 Provided further that the provision of this Section shall not apply to a cinematograph exhibition where the proprietor of the cinematograph exhibition has been permitted to pay lump-sum amount in lieu of the amount of tax, as per the proviso to clause (b) of sub- section (1) of Section 5. 8 .Security:– The Commissioner or any officer authorized in this behalf by him for the purpose may for good and sufficient reasons; demand from the proprietor of an entertainment of a temporary nature, a reasonable security before the entertainment is held and on such demand being made the proprietor concerned shall furnish the security. 9 .Penalty for non-payment of tax:– (1)If any person is admitted for payment to any place of entertainment and the provisions of Section 8 are not complied with, the proprietor of the entertainment to which such person is admitted shall, on conviction before a Magistrate, be liable in respect of each such offence to a fine not exceeding one thousand rupees and shall in addition be liable to pay any tax which should have been paid. (2)If any proprietor or service provider of a cable television network or direct to home (DTH) service, as the case may be, fails to pay the entertainment tax as per provision of Section 6, he shall on conviction before a Magistrate, be liable in respect of each such offence to a fine not exceeding one and a half times of the amount of the tax due and shall in addition be liable to pay any tax which would have been paid.

The provisions of Section 8 and 9 shall not apply to any entertainment in respect of which a consolidated payment is made under sub-section (2) of Section 5.