The Tripura Entertainment Tax Act, 1997

THE TRIPURA ENTERTAINMENT TAX ACT, 1997 An Act

to update and consolidate the Tripura Amusement Tax Act, 1973 and the Tripura Cinemas (Regulation) Act, 1985 and to restructure the rate of taxation and the matters connected therewith or incidental thereto,

Whereas it is expedient and necessary to replace the present Acts, namely, the Tripura Amusement Tax Act, 1973 and the Tripura Cinemas (Regulation) Act, 1985, by one which consolidates the existing Acts, is comprehensive and modifies the tax structure which was impeding the growth of Cinema industries and other modes of entertainment.

Be it enacted by the Tripura Legislative Assembly in the forty eightieth year of the Republic of India, as follows:-

Short Title, Extent and Commencement.

1. (I)This Act may be called the Tripura Entertainment Tax Act, 1997.

1. (2) It extends to the whole of Tripura.
2. (3) It shall come into force on such date as the State Government may, by notification in Official Gazette, appoint. In this Act, unless there is anything repugnant in the subject or context; Detinitions. 2.(a) "admission" means admission as spectator or as one of an audience or as a participant to any place where entertainment is held.
   • (b) "Cable Television Network" shall have the same meaning as defined in the Cable Television Network (Regulation) Act, 1995.
   • (c) "Commissioner" means the Commissioner of Entertainment Tax appointed under section 5 ;
   • (d) "Entertainment" includes any theatre, circus, cinematographic or other exhibition, video shows for public, performance, amusement, game or sport, cable television network and any other class of entertainment that the State Government may notify, to which persons are admitted for payment ;
   • (e) "Payment for admission" includes :
     • (i) any payment for seat or other accommodation in any form in a place of entertainment ;
     • (ii) any payment for a programme or synopsis of an entertainment ;
     • (iii) any payment made for the loan or use of any instrument or contrivance which enables a person to get a normal or better view or hearing or enjoyment of the entertainment, which without the aid of such instrument or contrivance such person would not get ;
     • (iv) 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 of attending or continuing to attend the entertainment, either in addition to the payment, if any, for admission to the entertainment or without any such payment for admission;
     • (v) 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 payment involving tax or more tax is required ; Explanation :- any subscription raised or: donation collected in connection with an entertainment in any form shall be deemed to be payment for admission.
   • (f) "person" means and includes
     • (i) an individual,
     • (ii) a Hindu undivided or a joint family,
     • (iii) a company,
     • (iv) a firm,
     • (v) an association of persons or body of individuals whether incorporated or not,
     • (vi) a Department of any Government,
     • (vii) a local authority, and
     • (viii) every artificial juridical person, not falling within any of the preceding sub-clauses ;
   • (g) "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 ;
   • (h) "State Government" means the Government of Tripura;
     • (i) "Subscriber" shall have the same meaning as defined in the Cable Television Network (Regulation) Act, 1995 ; (i) "tax" means Entertainment tax payable under the Act ;
   • (k) "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 of the rules made thereunder, and a 'duplicate ticket' means a set of tickets used or intended to be used otherwise than in accordance with this Act or the rules made thereunder ;

(1) Except as otherwise expressly provided in this Act, there shall be charged, levied and paid to the State Government tax at the rate specified in the schedule attached to this Act for admission to any entertainment: Provided that the State Government may, from time to time by notification, and subject to such conditions as may impose, fix a higher rate of tax not exceeding one hundred percent or any lower rate of tax payable under this act on account of admission to any entertainment ; and thereupon the schedule shall be deemed to have been amended accordingly. (2) Subject to such restriction and conditions, as may be prescribed, the State Government may, by general or special order, make an exemption, or reduction in rate in respect of any entertainment or classes of entertainment. (3) Where exemption from the levy of tax under this Act on any entertainment is claimed by a proprietor under the provision of this section the burden of proof shall lie on such proprietor and the Commission may require the proprietor to substantiate the claim in the manner prescribed.

Proprietor of a cable television network shall be liable to pay tax at such rate for every subscriber to such cable television network as specified in the schedule attached to this act : Provided that the State Government may, from time by notification and subject to such conditions as may impose, fix a higher or lower rate of tax not exceeding one hundred rupees per subscriber; and thereupon the schedule shall be deemed to have been amended accordingly.

(1) The State Government may, for carrying out the purpose of this Act, appoint a Commissioner of Entertainment Tax and such other persons to assist him, as it thinks fit. (2) Persons appointed under sub-section (1) shall exercise such powers as may be conferred, and perform such duties as may be required by or under this Act. (3) The State Government may, instead of appointing any person under sub-section (I), invest, by notification, any officer to exercise any power under this Act and also specify therein the area in which power is to be exercised and thereupon such office or officers shall be deemed to have been appointed under sub-section (I). (4) All persons appointed under this section shall be deemed to be public servants within the meaning of section 2 1 of the Indian Penal Code, 1860.

(1) NO person shall carry on any entertainment where admission is given against payment unlesss he has been given a licence and possesses a certificate of the licence. Provided that the commissioner may refuse licence to an entertainment 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 holding of the entertainment is prejudicial to public safety, decency or morality. (2) Every person required by sub-section(1) to be have licence shall apply for licence to the Commissioner in the prescribed manner, and obtain a certificate of licence. (3) On receipt of an application under sub-section (2) the Commissioner shall, if he is satisfied after such enquiry as may be deemed necessary that the application is in order, give the licence to the applicant.

The State Government, may by an order in writing and subject to such conditions and restrictions as it may impose, exempt any entertainment or class of entertainment from the applicability of section 6 above.

(1) The Commissioner may, in addition to taking any other action under the provisions of this Act require any person who, in his opinion, is liable for licence but has not made an application in this behalf, to apply for licence and give licence to him. The Commissioner may also give licence to a proprietor who fails to apply for licence within a specified time. Provided that no action under this sub-section shall be taken unless the Commissioner has given notice to the proprietor of his intension so to do and has allowed him a reasonable opportunity of being heard. (2) Licence given under sub-section (1) shall take effect as if this had been made on the proprietors' application under sub-section (2) of section 6.

(1) Commissioner may, if he is of the opinion that public exhibition of any entertainment is prejudicial to public peace, safety, decency or morality, by order, suspend the exhibition of such entertainment in whole or any part of the State. (2) A copy of the order passed under sub-section (1) along with a statement of reason shall be sent to the State Government, which may confirm or discharge the order. (3) An order passed under this section shall remain in force for two months but may be extended by the State Government for any period, as it may think fit.

(1) The State Government may, on such conditions as may be prescribed, require the proprietor to pay the amount of the tax payable under section 3- (a) by stamping tickets with an impressed, embossed, engraved or adhesive stamp, issued by the State Government for the purpose, denoting that proper entertainment tax payable under the section 3 has been paid ; or (b) in accordance with returns of the payment for admission to the entertainment and on account of Tax ; or (c) by a consolidated payment of a percentage, to be fixed by the State 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 automatically registers the number of persons admitted.

(2) Amount of tax payable under section 4 shall be paid in the manner prescribed by the State Government. Licence shall be given for a period of one year. Provided that if the Commissioner is satisfied he may give licence for any period shorter than one year.

(1) The Commissioner may for good and sufficient reason, demand, from a proprietor of an entertainment a reasonable security before the entertainment is held and on such demand being made the proprietor' concerned shall furnish the security. (2) Commissioner may deduct any arrears of tax from the security and may vary or forfeit the security in such manner as may be prescribed. Provided that, no order to forfeit the security shall be made unless, after 'giving the proprietor reasonable opportunity of being heard, the commissioner is satisfied that the proprietor has evaded the tax.

(1) The entertainment tax leviable under section 3 shall be charged in respect of each person

(1)Where the commissioner is satisfied that the proprietor of an entertainment -(a) has failed to take licence as required under section 8 ; or (b) has failed to submit true and full return in the prescribed form ; or (c) possesses or has used duplicate tickets ; or (d) has fraudulently evaded or attempted to evade the payment of tax due in any manner whatsoever, he shall, after giving the proprietor a reasonable opportunity of being heard, asses to the best of his judgement, the amount of tax due from the proprietor, and may also impose a penalty equal to ten thousand rupees or double the amount of tax evaded, whichever is larger. Provided that no such penalty shall be imposed if it is found that the proprietor has deposited ninety percent or more of the tax so assessed before the process of assessment started. (2) The penalty and tax payable under this section shall be paid by such date as may be specified in the notice of demand and, where no such date is specified, it shall be paid within thirty days of the whole of the notice.

(1) Notwithstanding anything contained in section 56 of Indian Eastern 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 cinematographic exhibition in respect whereof tax is payable under section 3, except from the enclosure set apart by the proprietor for the purpose and in such manner as may be prescribed.

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 payment of tax.

Any sum due on account of tax or penalty under any provision of this Act, shall without prejudice to any other mode of recovery available to the State Government under any other law for the time being in force, be recoverable as arrears of land revenue.

(1)If any proprietor does not pay into a Government treasury the full amount of tax due from him under this Act on the basis of the return or his account books within the prescribed date, simple interest at the rate of twenty five percent per annum from the first day of the month next following the said date shall be payable by the proprietor upon the amount by which the tax so paid falls short of the amount of tax payable as per his return or account books. (2) If the amount of tax paid within the prescribed date is not less than ninety percent of the tax finally assessed, no interest as provided for in sub-section (1) of this section shall be levied.

(1)Any office authorised by the State Government or by the commissioner for the purpose, may enter any place of entertainment while the entertainment is proceeding, and any place ordinarily used as a place of entertainment at any reasonable time, with a view to see whether the provisions of this Act or any rules made thereunder are being complied with. (2) If any person prevents or obstructs the entry of any officer so authorised, he shall, in addition to any other punishment to which he is liable under any law for the time being in force, be punishable on conviction before a Magistrate to simple imprisonment not exceeding one month or fine not exceeding two thousand rupees or both. (3) Every Officer authorised under this section shall be deemed to be public servant within the meaning of section 210f the Indian Penal Code, 1860.

Whoever violates or aids or abets in violation of any of the provisions of this Act and for which no specific punishment is given in the section, shall on conviction before a Judicial Magistrate and in addition to any tax including interest if any, due from him, be punishable with imprisonment which may extend to six months or with fine not exceeding five thousand rupees or with both, and, when the offence is a continuing one, with a daily fine not exceeding two hundred rupees during the period of continuance of the offence.

Every offence punishable under any of the provisions of this Act shall be congnizable and bailable. Provided that no court shall take cognizance of any offence under this Act, or the rules made thereunder except with the previous sanction of the commissioner.

(1) Subject to such conditions as may be prescribed, the Commissioner may, either before or after institution of criminal proceedings under this Act, accept from the person who has committed or reasonably suspected of having committed an offence under this Act or the Rules made thereunder and which is punishable under section 18 of this Act, by way of composition of such offence a sum of Rs. 5,0001- or double the amount of the tax recoverable, whichever is greater in addition to the tax, if any, payable. (2) On payment of such sum as may be determined by the Commissioner under sub-section (I) no further proceeding shall be taken against the person in respect of the same offence.

No suit shall be brought in any civil court to set aside or modify any assessment made or order passed under the provisions of this Act, and no prosecution, suit or other proceedings shall lie against any officer of the State Government for anything in good faith done or intended to be done under this Act or the rules made thereunder.

For the purpose of making assessment under section 15 the commissioner shall have power to summon and enforce attendance of witnesses including proprietor and his employees or any of them, and to compel the production of books of account by the same means, and (so far as may be) in the same manner as provided in the case of a Civil Court under the Code of Civil Procedure, 1908.

(1) Any person aggrieved by any order of the officer appointed to assist him under sub-section (2) of section 5 may within sixty days of communication of such order prefer an appeal to the commissioner in such manner as may be prescribed. (2) Any person aggrieved by any order of the commissioner may within sixty days of communication of such order prefer an appeal to the State Government in such manner as may be prescribed and order of the appellate authority shall be final.

The Commissioner may, subject to such restrictions and conditions as may be prescribed, delegate, by notification in the Official Gazette any of his powers under this Act to any person appointed under sub- section (2) of section 5 to assist him.

A. Admission to Cinematographic exhibitions including video shows where price of the ticket excluding tax is - (1) Less than Rs. 3/- 50% (2) Less than Rs. 20/- but more than or equal to Rs. 3/- 75% (3) more than or equal to Rs. 20/- 100% B. Admission to all other entertainment covered under section 3 of the Act where price of the ticket excluding tax is - (1) Less than Rs. 3/- 25% (2) Less than Rs. 20/- but more than or equal to Rs. 3/- 50% (3) more than or equal to Rs. 20/- 100% Explanation: Tax calculated as per A and B above shall be rounded off to the nearest multiple of 50 paisa. C. Tax on Cable Television network Rs. 10/- per subscriber per month.