Entertainments Tax [1958: KAR. ACT 30 738 THE KARNATAKA ENTERTAINMENTS TAX ACT, 1958 ARRANGEMENT OF SECTIONS Statement of Objects and Reasons: Sections :
1. Short title, extent and commencement.
2. Definitions.
2A. Instructions to subordinate Authorities.
2B. Power to issue directions regarding jurisdiction.
3. Tax on payment for admission to entertainments.
3A. Additional Tax on Admission
3B. Omitted.
3C. Special provision in respect of certain films
4. Additional Tax on cinematograph shows.
4A. Tax on cinematograph shows in certain places.
4AA. Collection of Service Charges
4B. Special provision in respect of video shows.
4C. Special provision in respect of certain entertainments.
4D. Composition of tax payable under section 4C.
4E. Taxan amusement.
4F. Tax on recreation parlours.
4G. Tax on multi System operator.
5. Admission of entertainments.
6. Manner of payment of tax.
6A. Submission of returns and furnishing of information.
6B. Payment for admission, etc., escaping assessment.
6C. Rectification of mistakes.
6D. Issuance of Clearance Certificate to proprietors
6E. Registration of Certain Proprietors
7. Exemptions.
7A. Power of State Government to exempt or reduce Tax.
8. Refunds in certain cases.
8A. Rounding off of tax etc.
8B. Appeals. 1958: KAR. ACT 30] Entertainments Tax 739
8C. Revisional Powers of Deputy Commissioners. 8-CC. Revision by the Additional Commissioner
8D. Revision by the Commissioner.
8E. Appeal to the Appellate Tribunal.
8F. Revision by High Court in certain cases
9. Payment and recovery of tax.
9A. Forfeiture of illegal or excess collection of tax.
9AA. Recovery of tax or penalty or any other amount from certain other persons. 9AAA. Furnishing of return, etc.
9AB. Purchase by the State Government in auction of property.
9B. Liability of firms.
9C. Liability on transfer of business.
9D. Assessment of Legal representatives.
10. Inspection. 10-A. Registration of distributors, etc.
11. Admission of certain officers without payment.
12. Penalties.
12A. Summary disposal of certain cases.
13. Composition of offences.
14. Bar of certain proceeding.
15. Limitation for certain suits and prosecutions.
16. Delegation of certain powers of the State Government.
17. Omitted.
18. Power to make rules.
19. Repeal and savings.
20. Power to remove difficulties.
21. NOTIFICATIONS * * * * STATEMENT OF OBJECTS AND REASONS I Act 30 of 1958.- At present, there are different laws for the levy and collection of entertainment tax in the integrated areas of the State. It is proposed to have a uniform law on the subject for the entire State. Entertainments Tax [1958: KAR. ACT 30 740
2. In the Hyderabad, Madras and Mysore areas of the State, there is a cinema show tax in addition to entertainment tax. It has been considered desirable to have a uniform law on this subject applicable to the entire new State.
3. The draft Bill provides for the levy and collection of entertainments tax and for the payment of 90 per cent of the proceeds to the local authorities in whose jurisdiction the entertainments are held. It also provides for the collection of a cinema show tax at rates varying from Re.1 to Rs. 3 for each cinema show. The entire proceeds of the cinema show tax will be credited to Government. (Obtained from Notification No. 1604 - L.A., dated 3.5.1958. Published in the Karnataka Gazette (Extraordinary) Part IV-2A as No. 98.) II Amending Act 14 of 1966.—At present, tax is being levied on all entertainments except those which are specially exempted under section 7 of the Mysore Entertainments Tax Act, 1958. A surcharge on the entertainments tax is also levied under the Mysore Entertainments Tax (Surcharge) Act, 1962. In order to give encouragement to entertainments such as exhibitions, magic shows, dances, etc., it is proposed to abolish the levy of tax in such entertainments, and to levy entertainments tax only on horse races and cinematograph shows. It is also proposed to repeal the Mysore Entertainments Tax (Surcharge) Act, 1962 and to incorporate the provisions made therein with in increase of twenty-five per cent of the rate in the Mysore Entertainments Tax Act itself. As regards the additional tax on cinematograph shows show levied under section 4 of the Act, it is proposed to levy a higher rate of tax per show. Further in the City of Bangalore, in the case of Class I Theatres, i. e., theatres in which the rate for admission to the highest class is not less than two and a half rupees, it is proposed to levy the tax at ten rupees per show. Hence this Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 26th March 1966, as No. 56, p. 11.) III Amending Act 31 of 1969.—While considering methods by which delays in the disposal of cases can be reduced and the time of the courts can be saved in trying a large volume of petty cases, the Law Commission of India in their fourteenth Report recommended the adoption of the procedure laid down in section 130 of the Motor Vehicles Act, 1939. Section 130 of the Motor Vehicles Act, 1939 provides for the summary disposal of cases arising under that Act in respect of specific class of offences thereunder. In accordance with that section, the accused person can plead 1958: KAR. ACT 30] Entertainments Tax 741 guilty to the charge by registered letter and remit to the court as fine such sum as the court may specify. The Commission has recommended that this procedure may be extended to minor offences under other Acts. After examining the suggestion of the Law Commission of India, it has been decided to make a provision in the Mysore Sales Tax Act, 1957 (Mysore Act 25 of 1957) and the Mysore Entertainments Tax Act, 1958 (Mysore Act 30 of 1958) similar to section 130 of the Motor Vehicles Act, 1939 to deal with the offences prescribed under section 29 (1) of the Mysore Sales Tax Act, 1957 and section 12
(1) (b) (ii) of the Mysore Entertainments Tax Act, 1958. Hence this Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 4–5th February 1969, as No. 8579, p. 80.) IV Amending Act 14 of 1971.—In order to raise additional resources to be utilised exclusively for the relief of Bangla Desh refugees, the Government of Mysore has proposed to levy an additional surcharge of ten per cent, raising the existing surcharge of fifty per cent to sixty per cent of the basic entertainments tax on every payment for admission to an entertainment. The present measure is being enacted to give effect to the said proposal.
2. The Committee constituted under the proviso to subsection (2) of Section 3 of the Mysore State Legislature (Delegation of Powers) Act, 1971 (23 of 1971), has been consulted before enactment of this measure as a President’s Act. (Obtained from Presidents Act 14 of 1971.) V Amending Act 4 of 1973.— President’s Act 14 of 1971, 16 of 1971, 17 of 1971 and 18 of 1971 had been enacted to raise additional resources for the relief of Bangla Desh Refugees. They expire on 24th March 1973. It is proposed that while the additional levies for the relief of Bangla Desh Refugees may cease, the levies may be retained till 31st March 1974 to raise additional resources to meet the cost of ‘People’s Housing Programme’ to be undertaken by the State Government. Hence this Bill. (Obtained from L.A. Bill No.16 of 1973) VI Entertainments Tax [1958: KAR. ACT 30 742 Amending Act 15 of 1974.— It is proposed to raise the rates of “Surcharge” and “Show Tax” in order to augment the revenues of the State. Hence this Bill. (Obtained from L.A. Bill No.14 of 1974) VII Amending Act 36 of 1976.—With a view to augment the revenues of the State, it is proposed to levy an Additional Tax on entertainments on the value of tickets (inclusive of Entertainment Tax and Surcharge). It is further proposed, in order to effectively check evasion to increase the fines leviable under the Act and to provide for imprisonment as an alternative penalty. It is also proposed for the same reason to amend the Karnataka Cinemas Regulation Act to enable revocation or suspension of the cinema licence even when offences under the Act are compounded. Incidental amendments providing for rounding off the tax to the nearest multiple of five paise, refund of tax in case of power failure or mechanical breakdown etc., are also proposed to be made. Hence this Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 30th March 1976, as No. 1744, p. 8.) VIII Amending Act 16 of 1977.— At present, entertainment tax is levied on each payment for admission to an entertainment. In addition, surcharge and additional tax are levied on the same basis. An additional tax on cinematograph shows is also levied at prescribed rates per show. In view of the increasing number of complaints about the large scale evasion of entertainment tax especially by the proprietors of Cinema theatres in mofussil places, and in order to check such evasion, it is proposed to introduce a revised scheme of levy of entertainment tax in lumpsum on the basis of shows held in cinema theatres situated in places having less than 10,000 population. The proposed rate of tax per show is 12 per cent of the ‘Gross Collection Capacity’ (GCC), which is a notional sum representing the payments for admission to a show if all aggregate of all the seats in the cinema theatre are occupied. 1958: KAR. ACT 30] Entertainments Tax 743 Opportunity is also taken to make some minor amendments to overcome difficulties experienced in implementing the Act. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 1st April 1977, as No, 259, p. 6.) IX Amending Act 3 of 1979.—Section 9 (3) (b) of the Karnataka Entertainments Tax Act, 1958 prescribes that arrears of sums due under the Act may be recovered inter alia, by a Magistrate on application to him, as if they were a fine imposed by him. In the case reported in 28 STC at page 492, the High Court of Karnataka has held that the Magistrate is incompetent to recover sums which are in excess of his pecuniary jurisdiction specified in the Code of Criminal Procedure. To overcome the effect of the said decision of the High Court it is considered necessary to amend Section 9 (3) (b) to make it clear that a Magistrate can recover any amount of tax or amount due, notwithstanding anything contained in the Code of Criminal Procedure. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 9th August 1978, as No. 1127. p. 3. X Amending Act 21 of 1979.— In order to augment the revenues of the State it is proposed to second taxation and other laws. Opportunity is taken to make some other amendments also. Hence this Bill. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 27-3- 1979 as No. 259). XI Amending Act 25 of 1979.—In order to augment the revenues of the State, the Karnataka Taxation and Certain Other Laws (Amendment) Act, 1979, has been brought into force. According to the said Act, the tax has been increased by hundred per cent on Films which are granted ‘A’ certificate. Several representations have been received Entertainments Tax [1958: KAR. ACT 30 744 to reduce the same. Government propose to retain the power to make a reduction in the tax payable on ‘A’ Certificate Films. It is also proposed to amend section 7 of the Karnataka Entertainments Tax Act, 1958, so as to provide exemption for Children’s Film as it is an ‘International Children’s Year’. Hence this Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 19th April 1979, as No. 355, p. 5.) XII Amending Act 14 of 1980.—To augment the revenue of the State and to further rationalise the taxation structure, it is proposed to make certain amendments to the Karnataka Entertainments Tax Act, 1958, the Karnataka Forest Act, 1963 and the Karnataka Sales Tax Act, 1957. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 14th March 1980, as No. 192, p. 5.) XIII Amending Act 26 of 1980.—Under the provisions of the Karnataka Entertainments Tax Act 1958 (Karnataka Act 30 of 1958), the entertainments tax payable in respect of the films for which ‘A’ certificates are granted by the Board of Film Censors for restricted exhibition is twice the tax payable in other cases. It is now felt that the tax payable for such films should be the same as that normally paid for other films. The present Bill is intended to achieve this object. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 18th July 1980, as No. 567, p. 3.) XIV Amending Act 5 of 1981.—The present Bill is intended to give effect to the pronouncements made in the Budget Speech for the year 1981-82. In view of the proposed general reduction in the rate of tax applicable to Kannada, Konkani and Telugu Films produced in the State and with a view to safe-guarding Government revenue, certain provisions of the Law relating to grant of exemptions from payment of tax. Films on the basis of their language, theme or attitude value, etc., are now proposed to be modified. However grant of exemptions to Films receiving National or State Awards would be continued under the existing provisions of the Act. The provision in the existing Act relating rounding off of tax liability is modified in the interest of State revenue. 1958: KAR. ACT 30] Entertainments Tax 745 (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 26th March 1981, as No.197, p. 4.) XV Amending Act 13 of 1982.—In the budget speech for the year 1982-83, the Hon’ble Minister for Finance and Tourism, has indicated several proposal in order to augment the revenue of the State. This Bill seeks to give effect to the said proposals. Opportunity is taken to make some other minor amendments. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 27th March 1982, as No. 228, p. 31.) XVI Amending Act 2 of 1983.—Under the scheme of compulsory composition in section 4A of the Karnataka Entertainments Tax Act, 1958 (Karnataka Act No. 30 of 1958) as applicable to the cinematograph shows held in cinema theatres situated in local authorities with a population exceeding 15000 and less than 25000, as is payable either at 25 per cent of the gross collection capacity or at 20 per cent of the gross collection capacity on the maximum number of shows per day. It is not permissible to pay the tax in respect of such theatres in accordance with sections 3 and 3A of the Act. It was found that this scheme imposed very heavy tax burden on such theatres and some relief was necessary. It is therefore proposed to amend section 4A and provide for a scheme of composition for such theatres under which option is given to the proprietors of such theatres to pay either entertainments tax and surcharge under sections 3 and 3A or entertainments tax at 20 per cent of the gross collection capacity on the maximum number of permitted shows. In order to remove difficulties in the determination of gross collection capacity of drive-in-theatres for levying entertainments tax it is proposed to remove such theatres from the scheme of composition under section 4A. The incentive by way of reduction of 50 per cent of the entertainments tax given to Kannada, Kodava, Konkani and Tulu language films is now confined only to such films produced in the State of Karnataka. With a view to further encourage the development of films in the above regional languages it is now proposed to remove the said restriction by amending sections 3C and 4A. An Ordinance was promulgated to bring some of the provisions aforementioned immediately into force. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 26th November 1982, as No. 824, p. 56.) XVII Entertainments Tax [1958: KAR. ACT 30 746 Amending Act 9 of 1983.—According to the existing provisions of the Karnataka Entertainments Tax Act, 1958, levy of tax is restricted only to the two types of entertainments namely cinematograph shows and horse races. In the Budget speech for the year 1983-84, it has been indicated that the levy of entertainments tax shall be extended to certain selected games as well, but at concessional rates. The Bill seeks to implement these pronouncements in the Budget speech. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 29th March 1983, as No. 204, p. 53.) XVIII Amending Act 9 of 1984.—In the Budget Speech for the year 1984-85, The Hon’ble Chief Minister has proposed to withdraw the levy of Entertainments Tax on sports and also to provide for the passing of benefit of exemption or reduction of entertainments tax to the cinegoers in respect of theatres which are covered by composition scheme. The Karnataka Taxation Review Committee had recommended prescribing a minimum penalty for evasion of taxes. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 22nd March 1984, as No. 180, p. 50.) XIX Amending Act 3 of 1985.—The proposed legislation is for the purpose of making amendments to certain definitions under the Act with a view to making the levy of tax effective; for liberalising exemptions in favour of award winning films, educational films and children films. The proposed legislation also seeks to extend the composition Scheme to places upto a population of one lakh and also to extend the scheme to entertainment through video shows. It is also proposed to rationalise and streamline the existing provisions. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 22nd September 1983, as No. 836, p. 59.) XX Amending Act 22 of 1985.—Consequent upon the presentation of the budget for the year 1985-86 the following amendments to the Karnataka Entertainments Tax Act, 1958 become necessary. Clause 2 provides for amendment of section 3C to limit the concession now given to films produced in the regional languages outside the State for a period or 1958: KAR. ACT 30] Entertainments Tax 747 one year from 1-1-1986 and continue such concession to such films produced within the State. Clause 3 is to prohibit the proprietors of cinema theatres from collecting show tax from the persons admitted to the cinema. Clause 4(3) is to plug the evasion of tax by the proprietors of cinema theatres paying tax under section 4A. In respect of Video Shows, the tax is increased from Rs. 100 per month to Rs. 1,000 per month. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 1st August 1985, as No. 416, p. 47.) XXI Amending Act 3 of 1987.— According to clause (b) of sub-section (1) of section 3C of the Karnataka Entertainment Tax Act, 1958 in the case of a cinematograph show of a Kannada, Kodava, Konkani or Tulu film produced outside the State of Karnataka the rates of entertainment tax payable shall be one half of the rates specified therein for a period of six months from the date of first release of such film in the State of Karnataka, but not beyond 31st December 1986. It is proposed to extend the date from 31st December 1986 to 31st December 1987. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 4th February 1987, as No. 98, p. 67.) XXII Amending Act 15 of 1987.—To give effect to the proposals made in the budget speech it is proposed to amend the Karnataka Entertainments Tax Act, 1958. Opportunity is taken to make a consequent amendment to section 4A also. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 27th March 1987, as No. 244, p. 77.) XXIII Amending Act 17 of 1987.—To give effect to the announcement made by the Hon’ble Chief Minister on the floor of the Assembly on 27th March 1987, it is proposed to increase the rate of show tax in lieu of exemption of tax on leasing of feature films under Karnataka Sales Tax Act, 1957. Hence the Bill. Entertainments Tax [1958: KAR. ACT 30 748 (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 3rd April 1987, as No. 285, p. 65.) XXIV Amending Act 31 of 1987.—The definition of “local authority” appearing in clause (g) of section 2 of the Karnataka Entertainments Tax Act, 1958 includes a town panchayat or a village panchayat. After coming into force of the Karnataka Zilla Parishads, Taluk Panchayat Samithis, Mandal Panchayats and Nyaya Panchayats Act, 1983, the town panchayats and village panchayats are no more in existence and in their place Mandal Panchayats are constituted. Therefore, it is necessary to amend clause (g) to substitute the expression “Mandal Panchayat” in place of “town panchayats or Village panchayat”. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 2nd September 1987, as No. 573, p. 69.) XXV Amending Act 2 of 1988.—With a view to give some relief to the exhibitors of Kannada films from the enhancement of Show Tax, it is proposed to amend the Karnataka Entertainments Tax Act, 1958. As the matter was urgent and the Karnataka Legislative Council was not in Session, the Karnataka Entertainments Tax (Amendment) Ordinance, 1987 (Kannada Ordinance 7 of 1987) was promulgated. This Bill seeks to replace the said Ordinance. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 23rd January 1988, as No. 54, p. 62.) XXVI Amending Act 17 of 1988.—While a film in Kannada, Kodava, Konkani or Tulu language has to secure a “best feature film award” for exemption from payment of entertainments tax, a film in any other language has to secure only “an award” for exemption from payment of Entertainments Tax. It is proposed to set right the anomaly in the condition necessary for grant of exemption from payment of entertainments tax by requiring films in other languages also to secure “a best feature film award” for grant of exemption from payment of Entertainments Tax. With a view to provide some relief to films other than Kannada, Kodava, Konkani or Tulu languages, it is proposed to reduce the show tax. Hence the Bill. 1958: KAR. ACT 30] Entertainments Tax 749 (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 2nd April 1988, as No. 201, p. 3.) XXVII Amending Act 20 of 1989.—It is proposed to amend the Karnataka Entertainments Tax Act, 1958 (Karnataka Act 30 of 1958),—
(i) to empower the State Government or the Commissioner to issue orders, instructions and directions to the subordinate officers for the effective implementation of the provisions of the Act; and
(ii) to empower the Commissioner to transfer the powers conferred on an entertainments Tax Officer in respect of any specified place of Entertainments to any other Entertainments Tax Officer. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 27th March 1989, as No. 167, p. 74.) XXVIII Amending Act 7 of 1990.—To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Karnataka Entertainments Tax Act, 1958. Opportunity is also taken to rationalise certain provisions of the said Act. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 29th March 1990, as No. 162, p. 71.) XXIX Amending Act 6 of 1992.—After examining the representation made by the Karnataka Film Chamber of Commerce, it was considered necessary to extend 50% concession in Entertainment Tax to all Kannada, Kodava, Konkani or Tulu films censored before 31-12-1987, irrespective of whether the film has been produced within Karnataka or outside, and without any time limit. Accordingly, the Karnataka Entertainment Tax (Amendment) Ordinance, 1991 (Karnataka Ordinance No. 12 of 1991) was promulgated. This Bill seeks to replace the said Ordinance. Opportunity is also taken to amend Section 17 to provide for payment of compensation to the local authorities out of the proceeds of the surcharge collected during any year. Hence the Bill. Entertainments Tax [1958: KAR. ACT 30 750 (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 30th March 1992, as No. 199, p. 51.) XXX Amending Act 5 of 1993.—Consequent to the re-designation of posts in the Commercial Tax Department, it has become necessary to make suitable amendments in the relevant Taxation Laws. The full bench of our High Court in Shah Wallace case while overruling a Division Bench judgement of our High Court in Janardhanacharya’s case had held that the notifications issued under section 8A of the Karnataka Sales Tax Act, 1957 become inoperative when the relevant provisions of the Act are subsequently amended by way of insertion of any entry relating to the class of goods to which exemptions were given by the notifications. Therefore, it was considered necessary to suitably amend the said Act, to save the notifications already issued. As the matter was urgent and both the Houses were not in session, the amendments were carried-out by promulgation of the Karnataka Taxation Laws (Amendment) Ordinance, 1992. This Bill seeks to replace the above Ordinance. Hence the Bill. (Obtained from L.A. Bill No. 29 of 1992.) XXXI Amending Act 11 of 1993.— (As appended to at the time of introduction of the Bill) It is considered necessary to amend the Karnataka Tax on Luxuries (Hotels and Lodging Houses) Act, 1979, the karnataka Tax on Professions, Traders, Callings and Employments Act, 1976, the Karnataka Entertainments Tax Act, 1958 and the Karnataka Sales Tax Act, 1957 to give effect to the proposals made in the budget speech and matters connected therewith. Hence the Bill. (Obtained from L.A. Bill No. 15 of 1993) XXXII Amending Act 18 of 1994.—It is considered necessary to amend the Karnataka Sales Tax Act, 1957, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka Tax on Entry or Goods Act, 1979, the 1958: KAR. ACT 30] Entertainments Tax 751 Karnataka Entertainments Tax Act, 1958, the Mysore Betting Tax Act, 1932 and the Karnataka Agricultural Income Tax Act, 1957 to give effect to the proposals made in the Budget speech and matters connected therewith. Hence the Bill. (Obtained from L.A. Bill No. 12 of 1994.) XXXIII Amending Act 25 of 1994.—It is considered necessary to amend the Karnataka Entertainments Tax Act, 1958 to give effect to the report of the Committee Constituted under the Chairmanship of Sri V. N. Subba Rao to suggest comprehensive policy for Karnataka Film Industry. The Bill among other things provides for :
(i) levy of tax on cinematograph shows other than vedio shows on the basis of gross collection capacity per show in respect of entertainment held in cinema theatres situated within the limits of a local authority or town or village having a population above 15,000;
(ii) levy of entertainment tax at one-half of the rate in respect of a Kannada film remade form a film of any other language after a period of ten years from the date of issue of certificate by the Central Board of Film Certification to such other Language Film;
(iii) levy of entertainment tax at one-half of the rate in respect of a Kannada film remade from a film of any other language which has secured a best feature film award by the Central Government or any State Government or has figured in the Ponorama Section of International Film Festival;
(iv) payment of-a lumsum tax in lieu of tax under section 3B in respect of cinematograph shows other than vedio shows on the basis of gross collection capacity per show (irrespective of actual shows held or not) in cinema theatres situated within the limits of local authority or town or village having a population above fifteen thousand;
(v) exemption of entertainment tax for a period one year to be specified by the Government in respect of cinematograph show of a Kannada, Konkani, Kodava or Tulu film which has secured a best feature film award granted by the Central Government or any State Government or any internationally recognized award;
(vi) exemption of entertainment tax for a period of six months to be specified by the Government in the case of cinematograph show of a film other than Kannada, Konkani, Kodava or Tulu film which has secured a best feature Entertainments Tax [1958: KAR. ACT 30 752 film award granted by the Central Government or any State Government or any internationally recognised award;
(vii) levy of tax at one-half of the rates in the case cinematograph show of Kannada, Konkani, Kodava or Tulu film produced in the State of Karnataka;
(viii) levy of tax at one-half of the rates in the case cinematograph show of a Kannada, Konkani, Kodava or Tulu film produced outside the State of Karnataka and which has secured a censor certificate issued by the Central Board of Film Certification on or before 31st December 1987. Certain consequential changes also have been made. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 29th August 1994, as No. 714, p. 31.) XXXIV Amending Act 6 of 1995.—It is considered necessary to amend the Karnataka Sales Tax Act, 1957, the Karnataka Agricultural Income Tax Act, 1957, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka Entertainment Tax Act, 1958, the Karnataka Tax on Entry of Goods Act, 1979, Karnataka Tax on Luxuries, (Hotels and Lodging House) Act, 1979, the Mysore Betting Tax Act, 1932 and to give effect to the proposals made in the Budget speech and matters connected therewith. Hence the Bill. (Obtained from L.A. Bill No. 4 of 1995..) XXXV Amending Act 5 of 1996.—It is considered necessary to amend the Karnataka Tax on Luxuries (Hotels and Lodging Houses) Act, 1979, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka Entertainments Tax Act, 1958, the Karnataka Agricultural Income Tax Act, 1957, and the Karnataka Sales Tax Act, 1957 to give effect to the proposals made in the Budget speech and matters connected therewith. (Obtained from L.A. Bill No. 12 of 1996.) XXXVI Amending Act 15 of 1996.—It is considered necessary to make amendments to the following enactments. 1958: KAR. ACT 30] Entertainments Tax 753
1. It is proposed to amend sub-section (7) of section 5 of the Karnataka Tax on Entry of Goods Act, 1979 to empower the Joint Commissioner instead of the Commissioner to defer the assessment.
2. Consequent to the amendment of section 3 of the Karnataka Tax on Luxuries (Hotels and Lodging Houses) Act, 1979, clause (5) of Section 2 thereof is proposed to be amended.
3. It is proposed to insert a new Section 7A in the Karnataka Entertainments Tax Act, 1958 to empower the State Government to notify exemption or reduction of tax in respect of entertainments held in newly constructed cinema theatres situated within the limits of any specified local authority or class of local authority.
4. In the Karnataka Sales Tax Act, 1957, it is proposed to amend:—
(i) sub-section (1) of section 3B to empower the Commissioner instead of the State Government to specify the functions of the Additional Commissioners.
(ii) Explanation to sub-section (1C) of Section 5, to re-define the term silk fabrics with a view to include only such silk fabrics in which proportion of silk is 60% or more by weight of total fibre content so that small time weavers who weave the silk sarees of inferior quality with less than 60% silk content and sell to the customers, will get tax relief.
(iii) proviso to sub-section (2) of section 6A, to empower the Commissioner to notify any other goods in addition to the goods referred to in the proviso.
(iv) sub-section (3) of section 28-A, to empower the officer intercepting any goods vehicle at any place other than a check post or barrier to direct the person incharge or owner of such goods vehicle to take it to the nearest check post or Police Station for the purpose of examining contents in the vehicle;
(v) sub-section (4) of section 28-A to provide for levy of minimum penalty and to enhance the upper limit of the penalty.
(vi) sub-section (6) of section 28-A, to empower the officer levying penalty to retain the goods vehicle in case of a tanker carrying goods in liquid or gaseous form or to retain the whole goods if it is a single unit and not separable into any part; and to provide for furnishing Bank guarantee in respect of the penalty leviable under the Act.
(vii) serial number 3-A of Second Schedule to reduce the tax from 12 per cent to 4 per cent in respect of agricultural implements like cultivators, discploughs etc.,
5. Certain consequential amendments are also made. Entertainments Tax [1958: KAR. ACT 30 754 (Obtained from L.A. Bill No. 23 of 1996.) XXXVII Amending Act 7 of 1997.—It is considered necessary to amend the Karnataka Tax on Luxuries (Hotels, Lodging Houses and Marriage Halls) Act, 1979 (Karnataka Act 22 of 1979), the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979), the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976), the Karnataka Excise act 1966 (Karnataka Act 21 of 1966), the Karnataka Entertainments Tax Act, 1958 (Karnataka Act 30 of 1958), the Karnataka Agricultural Income Tax Act, 1957 (Karnataka Act 22 of 1957), the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Mysore Betting Tax Act 1932 (Mysore Act IX of 1932), and to give effect to the proposals made in the Budget Speech and matters connected therewith. Certain consequential amendments are also made. Hence, the Bill. (Obtained from L.A. Bill No. 12 of 1997.) XXXVIII Amending Act 18 of 1997.—It is considered necessary to amend the Karnataka Sales Tax Act, 1957 to reflect the clear intention of the Budget speech for the year 1997-98. After considering the representation made by the Karnataka Film Chamber of Commerce, it was considered necessary to amend the Karnataka Entertainments Tax Act, 1958 to provide for,
(i) reduction of rate of entertainment tax, and
(ii) abolition of surcharge consequent to re-introduction of ticket sealing system with effect from 1.4.97; In view of the decision of the Hon’ble High Court of Karnataka in W. P. No. 2397/1988 and other connected matters, it has become necessary to amend the Karnataka Agricultural Income Tax, 1957 retrospectively with effect from 1.4.1975 to facilitate assessment of income received after dissolution of a firm even though at the time of such assessment the firm stood dissolved. Hence, the Bill. (Obtained from L.A. Bill No. 35 of 1997.) 1958: KAR. ACT 30] Entertainments Tax 755 XXXIX Amending Act 3 of 1998.- It is considered necessary to amend the Karnataka Taxation Laws Amendment Act, 1997 (Karnataka Act 7 of 1997), the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979), the Karnataka Tax on Luxuries (Hotels, Lodging Houses and Marriage Halls) Act, 1979 (Karnataka Act 22 of 1979), the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976), the Karnataka Entertainments Tax Act, 1958 (Karnataka Act 30 of 1958) ,the Karnataka Excise act 1966 (Karnataka Act 21 of 1966), the Mysore Betting Tax Act 1932 (Mysore Act IX of 1932), the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957) and to give effect to the proposals made in the Budget Speech and matters connected therewith. Certain consequential amendments are also made. Hence, the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 26th March 1988, as No. 349, p. 32 and L.A. Bill No. 6 of 1998.) XL Amending Act 20 of 1998.- It is considered necessary to amend the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957 and the Karnataka Entertainment Tax Act, 1958 (Karnataka Act 32 of 1958) to provide for exemption for certain State public undertakings engaged in manufacturing activities from deduction Tax under section 19AA, to authorise the Joint Commissioner of the Commercial Taxes to permit prosecution under section 29(2), to increase the composition amount to be on par with the other penalties under the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), and to provide relief to cinema theatres in respect of Show Tax under the Karnataka Entertainment Tax Act, 1958 (Karnataka Act 32 of 1958). Hence the Bill. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A, dated 15th May 1998, as No. 601, p.5) XLI Amending Act 4 of 1999.- It is considered necessary to amend the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Karnataka Agricultural Income Tax Act, 1957 (Karnataka Act 22 of 1957), the Karnataka Tax on entry of goods Act 1979 (Karnataka Act 27 of 1979) the Karnataka Tax on Luxuries (Hotel, Lodging Housed and Marriage Halls) Act, 1979 (Karnataka Act 22 of 1979) and the Karnataka Entertainment Tax Act, 1958 (Karnataka Act 30 of 1958) to give effect to Entertainments Tax [1958: KAR. ACT 30 756 the proposals made in the Budget Speech and matters connected therewith. Certain consequential amendments are also made. Hence, the Bill. (Obtained from L.A. Bill No. 6 of 1999.) XLII Amending Act 5 of 2000.- It is considered necessary to amend the Mysore Betting Tax Act, 1932 (Mysore Act IX of 1932), the Karnataka Agricultural Income Tax Act, 1957 (Karnataka Act 22 of 1957), the Karnataka Tax on Luxuries Act, 1979 (Karnataka Act 22 of 1979) and the Karnataka Entertainment Tax Act, 1958 (Karnataka Act 30 of 1958) to give effect to the proposals made in the Budget Speech and matters connected therewith. Certain consequential amendments are also made. Hence, the Bill. (Obtained from L.A. Bill. No. 6 of 2000.) XLIII Amending Act 26 of 2000.- (As appended to at the time of introduction) In the Budget 200-2001, the entertainment tax on non-Kannada films was enhanced from 70% to 100% with effect from 1.4.2000 and necessary amendments were made to the Karnataka Entertainment Tax Act, 1958. After the Tax was so enhanced, representations were received from some of the trade bodies including cinema talkies owners and peoples representatives that this increase was very steep and had caused lot of distress to the cine owners and cine goers and had adverse impact on the attendance in cinema halls and would severely impair the cinema trade including the upkeep of the cinema halls. Likewise, there were request for Banjara-specking peoples, who are also minorities in the State of karnataka to extend the benefit of exemption from payment of entertainment tax in respect of Banjara film as it has been allowed to Kodava Konkani and tulu films. After examining the representations, the Government was convinced that cinema trade in Karnataka so far as it relates to non-Kannada film was severely affected on account of steep increase in the rate of entertainment tax with effect from 1.4.2000 and therefore it was felt necessary to reduce the rate of tax to 80% by making suitable amendments to the Karnataka Entertainment Tax Act, 1958 to redress the 1958: KAR. ACT 30] Entertainments Tax 757 hardship caused to the cine owners and cine goers. It was also considered necessary to extend the benefit of exemption to Banjara film. Since the Matter was urgent and the Karnataka Legislative Council was nor in session, the Karnataka Entertainment Tax (Amendment) Ordinance, 2000 (Karnataka Ordinance No. 6 of 2000) was promulgated to achieve the above object. Hence the Bill (Obtained from L.A. Bill No 28 of 2000). XLIV Amending Act 5 of 2001.- To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957 the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979), the Karnataka Tax on luxuries Act, 1979 (Karnataka Act 22 of 1979), the Karnataka Entertainments Tax Act, 1958 (Karnataka Act 30 of 1958), the Karnataka Tax on Professions. Trades, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976) and the Karnataka Agricultrural Income Tax Act, 1957 Karnataka Act 22 of 1957). Certain consequential amendments are also made. Hence the Bill (Obtained from L.A. Bill No 7 of 2001. DPAL 9 SHASANA 2001). XLV Amending Act 5 of 2002.- It is considered necessary to amend the Karnataka Agriculture Income Tax. 1957, the Karnataka Sales Act, 1957, the Karnataka Taxes on Luxuries Act, 1979, the Karnataka Taxes on entry of Goods Act, 1979 and the karnataka Entertainment Tax Act, 1958 to give effect to the proposal made in the Budget Speech and matters connected therewith. Certain consequential and incidential amendments are also made. Hence the Bill (Obtained from L.A. Bill No 12 of 2002. DPAL 18 SHASANA 2002). XLVI Amending Act 7 of 2003.- It To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Karnataka Agricultural Income Tax Act, 1957, the Karnataka Sales Tax Act, 1957, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings and Employment Act, 1976, the Karnataka Tax on Luxuries Act, 1979, the Entertainments Tax [1958: KAR. ACT 30 758 Karnataka Tax on Entry of Goods Act, 1979 and the Karnataka Electricity (Taxation on Consumption) Act, 1959. Hence the Bill. [L.A. Bill No. 9 of 2003] (Entries 46, 52, 53, 54, 60 and 62 of List-II of the Seventh Schedule to the Constitution of India) XLVII Amending Act 3 of 2004.- The Hon'ble High Court of Karnataka in S.T.R.P. numbers 46 to 57/2003 has held that tax cannot be levied on civil works like asphalting and repairing of roads under the existing provisions of the Karnataka Sales Tax Act, 1957. However, taxes have been levied and collected on such civil works from 1st April 1986 relying on the existing entries. In view of the decision of the Hon'ble High Court, it is considered necessary to incorporate an enabling provision to levy such tax by amending the Karnataka Sales Tax Act, 1957 with retrospective effect. Similarly, the Hon'ble High Court of Karnataka in W. P. Nos. 8607- 8608/2003 has held that the tax cannot be levied on works contract of processing and supplying of photographs, photo prints and photo negatives under the existing provisions of the Karnataka Sales Tax Act, 1957. The Hon'ble High court has held that though the State Legislature has the power to levy tax on such works contracts, in view of the relevant entry having been struck down by the Hon'ble Supreme Court, in September 1999, tax cannot be levied and collected on such works contracts till the relevant entry is re-introduced in the Karnataka Sales Tax Act,
1957. Taxes have been levied and collected on such works contracts from 1st July
1989. In view of the decision of the Hon'ble Supreme Court and the High Court, it is considered necessary to amend the Karnataka Sales Tax Act, 1957 with retrospective effect. It is also considered necessary that there should be a provision under the Karnataka Sales Tax Act, 1957 to constitute a Settlement Commission to reduce long pending disputes and recover tax arrears expeditiously. The rate of sales tax being levied at present on Camphor is 5%. Whereas the Empowered Committee of State Finance Ministers has appealed to all the States / UTs to adopt the floor rates on all items. Hence, the rate of sales tax on Camphor is being increased to the floor rate of 8% by amending the Karnataka Sales Tax Act, 1957. It is also considered necessary to amend the Karnataka Tax on Luxuries Act, 1979, to give tax relief to clubs situated within areas outside municipal 1958: KAR. ACT 30] Entertainments Tax 759 corporations and to give tax relief to senior citizens and members of a youth club registered or recognised by the Department of Youth Services. It is also considered necessary to omit the provisions under the Karnataka Entertainments Tax Act, 1958 relating to collection of service charges by the owners of theatres. Hence the Bill. [L.A. BILL No. 6 OF 2004] XLVIII Amending Act 26 of 2004.- To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Mysore Betting Tax Act, 1932(Mysore Act IX of 1932), the Karnataka Sales Tax Act, 1957(Karnataka Act 25 of 1957), the Karnataka Entertainments Tax Act, 1958(Karnataka Act 30 of 1958), the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976(Karnataka Act 35 of 1976), the Karnataka Tax on Luxuries Act, 1979) and the Karnataka Tax on Entry of Goods Act, 1979(Karnataka Act 27 of 1979). Opportunity is also taken to rationalize certain provisions of the said Acts and also to codify and make certain consequential amendments to implement reliefs already announced. Hence the Bill. [ L.A. BILL No. 18 OF 2004 ] XLIX Amending Act 11 of 2005.- To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Mysore Betting Tax Act, 1932 (Mysore Act IX of 1932), the Karnataka Sales Tax Act, 1957(Karnataka Act 25 of 1957), the Karnataka Entertainments Tax Act, 1958(Karnataka Act 30 of 1958), the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976(Karnataka Act 35 of 1976), the Karnataka Tax on Entry of Goods Act, 1979(Karnataka Act 27 of 1979), the Karnataka Tax on Lotteries Act, 2004 (Karnataka Act 3 of 2004), the Karnataka Special Tax on Entry of Certain Goods Act, 2004 (Karnataka Act 29 of 2004) and the Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004). Opportunity is also taken to rationalize certain provisions of the said Acts. Hence the Bill. (LA Bill No. 12 of 2005) Entertainments Tax [1958: KAR. ACT 30 760 L Amending Act 25 of 2005.- To give effect to the decision taken to reintroduce the provision of collection of tax free service charges by the cinema theatre owners for maintenance of the theatres as requested by the film industry. Hence the Bill. (LA Bill No. 23 of 2005) LI Amending Act 5 of 2006.- It is considered necessary to amend the Karnataka Agriculture Income Tax Act, 1957, the Karnataka Sales Tax Act, 1957, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions Trades, Callings and Employments Act, 1976, the Karnataka Tax on Luxuries Act, 1979 and the Karnataka Tax on Entry of Goods Act, 1979 to give effect to the proposal made in the Budget and matters connected therewith. Certain consequential and incidental amendments are also made. Hence the Bill. [ L.A. Bill No. 6 of 2006 ] LII Amending Act 5 of 2007.- It is considered necessary to amend the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 and the Karnataka Tax on Luxuries Act, 1979 to give effect to the proposals made in the Budget and matters connected therewith and also to amend the Karnataka Sales Tax Act, 1957 to provide for a provision for empowering the State Government to withdraw any notification issued under section 8-A either prospectively or retrospectively to give effect to the decision taken by the State Government with regard to discontinuance of sales tax based incentives to industries as a part of national consensus to bring in reforms in State taxes. Certain consequential and incidental amendments are also made. Hence the Bill. [L.A.Bill No. 22 of 2007] [Entries 54, 60 and 62 of List II of the Seventh Schedule to the Constitution of India.] LIII Amending Act 25 of 2007.- It is considered necessary to amend the Karnataka Entertainments Tax Act, 1958 to reduce the tax pay payable by a proprietor of amusement in order to encourage tourism in the State. Hence the Bill. [L.A.Bill No 40 of 2007] [Entry 62 of List II of the Seventh Schedule to the Constitution of India.] 1958: KAR. ACT 30] Entertainments Tax 761 LIV Amending Act 6 of 2008.- It is considered necessary to amend the Karnataka Sales Tax Act, 1957, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 and the Karnataka Tax on Luxuries Act, 1979 to give effect to the proposals made in the Budget and matters connected therewith or incidental thereto. Opportunity is also taken to rationalise taxation and make certain consequential amendments also. Hence the Bill. (LA Bill No. 3 of 2008, File No.DPAL 11 Shasana 2008) [Entry 62 of List II of the Seventh Schedule to the Constitution of India.) LV Amending Act 7 of 2009.- It is considered necessary to amend the Mysore Betting tax Act, 1932, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions Trades, Callings and Employments Act, 1976 and the Karnataka Tax on Luxuries Act, 1979 to give effect to the proposals made in the Budget and matters connected therewith. Certain consequential and incidental amendments are also made. Hence the Bill. (LA Bill No.21 of 2009, File No. DPAL 13 Shasana 2009) [Entries 60 and 62 of List II of the Seventh Schedule to the Constitution of India.) LVI Amending Act 5 of 2010.- It is considered necessary to amend the Karnataka Sales Tax Act, 1957, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka Tax on Luxuries Act, 1979 and the Karnataka Tax on Entry of Goods Act, 1979 to give effect to the proposals made in the Budget and matters connected therewith and specifically to,
(i) amend the Karnataka Sales Tax Act, 1957 to provide for levy of tax on supply of goods by an association or a body of persons like clubs, registered or unregistered, to its members retrospectively from second day of February, 1983 from which day by the forty-sixth amendment to the Constitution of India, the State Legislature was empowered to levy tax on such Entertainments Tax [1958: KAR. ACT 30 762 transactions so as to remove doubts raised in this regard because of the judgment of the Hon’ble High Court of Karnataka in the case of Century Club and Others versus The State of Mysore and another, declaring the provisions made in the Karnataka Sales Tax Act, 1957 before such constitutional amendment for levy of tax on such transactions as void and inoperative.
(ii) provide for collection of entry tax in advance under the Karnataka Tax on Entry of Goods Act, 1979 at the point of sugar factories selling sugar to dealers who subsequently cause entry of such sugar into any local area in the State. Certain consequential and incidental amendments are also made. Hence the Bill. [L.A.Bill No. 9 of 2010, File No.DPAL 12 Shasana 2010] [Entries 52,54, 60 and 62 of List II of the Seventh Schedule to the Constitution of India.] LVII Amending Act 15 of 2011.- It is considered necessary to amend the Mysore Betting Tax Act, 1932, the Mysore Race Courses Licensing Act, 1932, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka Tax on Luxuries Act, 1979 and the Karnataka Tax on Entry of Goods Act, 1979 to,
(i) extend the application of the Betting Tax Act, 1932 and the Mysore Race Courses Licensing Act, 1952 for the whole of State of Karnataka;
(ii) to omit certain redundant provisions and the Schedules in the Betting Tax Act, 1932 and the Mysore Race Courses Licensing Act, 1952;
(iii) to repeal certain redundant enactments; and
(iv) give effect to the proposals made in the Budget and matters connected therewith. Certain consequential and incidental amendments are also made. Hence the Bill. [L.A.Bill No. 11 of 2011, File No.Samvyashae 13 Shasana 2011] [Entries 34,52, 60 and 62 of List II of the Seventh Schedule to the Constitution of India.] LVIII Amending Act 18 of 2012.- It is considered necessary to amend the Karnataka Agricultural Income Tax Act, 1957, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka Tax on Luxuries Act, 1979 and the Karnataka Tax on 1958: KAR. ACT 30] Entertainments Tax 763 Entry of Goods Act, 1979 to give effect to the proposals made in the Budget and matters connected therewith. Certain consequential and incidental amendments are also made. Hence the Bill. [L.A. Bill No. 4 of 2012, File No.Samvyashae 24 Shasana 2012] [Entries 46, 52, 60 and 62 of List II of the Seventh Schedule to the Constitution of India.] LIX Amending Act 53 of 2013.- It is considered necessary to amend the Karnataka Sales Tax Act, 1957, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 and the Karnataka Tax on Entry of Goods Act, 1979 to give effect to the proposals made in the Budget and matters connected therewith particularly to specify that any clarification issued by the Commissioner of Commercial Taxes under the Karnataka Sales Tax Act, 1957 or the Karnataka Tax on Entry of Goods Act, 1979 overrides the clarification of the Authority for Clarification and Advance Rulings. Certain consequential and incidental amendments are also made. Hence the Bill. [L.A. Bill No. 07 of 2013, File No. Samvyashae 36 Shasana 2013] [Entries 52, 54, 60 and 62 of List II of the Seventh Schedule to the Constitution of India.] LX Amending Act 05 of 2016.- To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Karnataka Entertainment Tax Act, 1958 (Karnataka Act 30 of 1958), Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976), the Karnataka Tax on luxuries Act, 1979 (Karnataka Act 22 of 1979) and the Karnataka Tax on Entry of Goods Act, 1979(Karnataka Act 27 of 1979). Opportunity is also taken to rationalize certain provisions of the said Acts and repeal The Karnataka Agriculture Income-Tax 1957 (Karnataka Act 22 of 1957). Hence the Bill [L.A. Bill No.11 of 2016, File No. Samvyashae 19 Shasana 2016] [entries 46, 52,60 and 62 of List II of the Seventh Schedule to the Constitution of India.] - - - - - Entertainments Tax [1958: KAR. ACT 30 764 1[KARNATAKA ACT]1 No. 30 OF 1958. (First published in the 1[Karnataka Gazette]1 on the First day of January, 1959.) THE 1[KARNATAKA]1 ENTERTAINMENTS TAX ACT, 1958. (Received the assent of the Governor on the Nineteenth day of December, 1958.) (As Amended by Acts 14 of 1966, 31 of 1969, 14 of 1971, 4 of 1973, 15 of 1974, 36 of 1976, 16 of 1977, 3, 21 and 25 of 1979, 14 and 26 of 1980, 5 of 1981, 13 of 1982, 2 and 9 of 1983, 9 of 1984, 3 and 22 of 1985, 3, 15, 17 and 31 of 1987, 2 and 17 of 1988, 20 of 1989, 7 of 1990, 6 of 1992, 5 and 11 of 1993, 18 and 25 of 1994, 6 of 1995, 5 and 15 of 1996, 7 and 18 of 1997, 3 and 20 of 1998, 4 of 1999, 5 of 2000, 26 of 2000, 5 of 2001, 5 of 2002, 7 of 2003, 3 of 2004, 26 of 2004, 11 of 2005, 25 of 2005, 5 of 2006, 5 of 2007, 25 of 2007, 6 of 2008, 7 of 2009, 5 of 2010, 15 of 2011, 18 of 2012, 53 of 2013 and 05 of 2016.) An Act to consolidate and amend the laws relating to the levy of tax on entertainments in the 1[State of Karnataka]1. WHEREAS it is expedient to consolidate and amend the laws relating to the levy of tax on entertainments in the 1[State of Karnataka]1; BE it enacted by the 1[Karnataka State]1 Legislature in the Ninth year of the Republic of India as follows:—
1. Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 01.11.1973.
1. Short title, extent and commencement.- (1) This Act may be called the 1[Karnataka]1 Entertainments Tax Act, 1958.
1. Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 01.11.1973.
(2) It extends to the whole of the 1[State of Karnataka]1.
1. Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 01.11.1973.
(3) Section 19 shall come into force at once in the whole of the 1[State of Karnataka]1 and the rest of this Act shall come into force at once in the areas of the State in which any of the enactments repealed by section 19, was in force. All the provisions of this Act (except section 19) shall come into force in such other area or areas of the State from such 2[date]2 or dates as the State Government may by notification specify.
1. Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 01.11.1973.
2. Act came into force in all other areas of the State on 1.1.1959 by notification. Text of the notification is at the end of the Act. 1958: KAR. ACT 30] Entertainments Tax 765
2. Definitions.- In this Act, unless the context otherwise requires,—
(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; 1[(aa) “Additional Commissioner” means the Additional Commissioner of Commercial Taxes appointed under the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957) or the Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004); ]1
1. Inserted by Act 15 of 2011 w.e.f 01.04.2011.
(b) “admission to an entertainment” includes admission to any place in which an entertainment is held; 1[(ba) “Amusement” means any amusement and includes playing a game or skill on a machine or riding on a machine or any other carriage or contraption or boat or other vessel or playing in an enclosure or water body or any other specially designed or developed or demarcated surface or area or participating in any contest or game of chance or skill or talent, held or organized or provided in any amusement arcade or amusement park or any other place for which persons are required to make payment for admission or participation;]1
1. Substituted by Act 5 of 2006 w.e.f 01.04.2006. 1[2[(bb)]2 “antennae” means an apparatus which receives television signals that enables viewers to tune into transmission including national or international satellite transmission 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 places are linked by metallic co-axial or optic fibre cable to a Central System, called headend 3[or a tuner or a similar device which enables Direct To Home transmission of television signals]3 ]1
1. Inserted by Act 11 of 1993 w.e.f 01.04.1993.
2. Renumberd by Act 5 of 2002 w.e.f 01.04.2002.
3. Inserted by Act 5 of 2006 w.e.f 01.04.2006. 1[(c) 2[Deputy Commissioner]2 means a 2[Deputy Commissioner]2 of Commercial Taxes appointed under the Karnataka Sales Tax Act, 1957;]1
1. Substituted by Act 3 of 1985 w.e.f 10.01.1985 Entertainments Tax [1958: KAR. ACT 30 766
2.. Substituted by Act 5 of 1993 w.e.f 9.11.1992. 1[(ca) “cable television” means a system organised 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 ‘headend’ and, by using a video cassette or disc or both, recorder or player or similar such apparatus on which pre-recorded video cassettes or disc or both are played or replayed and the films or moving pictures or series of pictures which are viewed and heard on Television receiving set at a residential or a nonresidential place of a connection holder;]1
1. Inserted by Act 11 of 1993 w.e.f 01.04.1993. 1[2[(cb)]2 ‘cinema theatre’ means any place of entertainment in which cinematograph shows are held to which persons are admitted for payment;]1
1. Inserted by Act 16 of 1977 w.e.f 01.04.1979 by notification. Text of the notification is at the end of the Act.
2. Clauses (ca) and (cb) relettered as (cb) and (cc) by Act 11 of 1993 w.e.f.
01.04.1993. 1[2[(cc)]2 “Commissioner” means the Commissioner of Commercial Taxes appointed under the Karnataka Sales Tax Act, 1957;]1
1. Inserted by Act 3 of 1985 w.e.f 10.01.1985.
2. Clauses (ca) and (cb) relettered as (cb) and (cc) by Act 11 of 1993 w.e.f. 01.04.1993.
(d) “complimentary ticket” means a ticket or pass for admission to an entertainment free of any payment or at a reduced rate of payment for such admission; 1[(da)XXX]1
1. Omitted by Act 15 of 2011 w.e.f 01.04.2011. 1[(e) ‘Entertainment’ with all its grammatical variations and cognate expressions means,—
(i) a horse race 2[or live telecast of a horse race]2 to which persons are admitted on payment;
(ii) Cinematograph show including video shows to which persons are admitted on payment or exhibition of films or moving pictures which are viewed and heard on the television receiving set, with the aid of any type of antennae with the cable network attached to it 3[or without a cable network attached under the Direct To Home scheme]3 or cable television for which 1958: KAR. ACT 30] Entertainments Tax 767 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;
(iii) any amusement 4[or recreation or any entertainment provided by a multi system operator]4 or exhibition or performance or pageant or a 5[x x x]5 game or sport whether held indoor or outdoor to which persons are admitted on payment;]1
1. Substituted by Act 7 of 1997 w.e.f 01.04.1997.
2. Inserted by Act 26 of 2004 w.e.f 01.08.2004.
3. Inserted by Act 5 of 2006 w.e.f 01.04.2006.
4. Inserted by Act 5 of 2002 w.e.f 01.04.2002.
5. Omitted by Act 3 of 1998 w.e.f 01.04.1998. 1[Explanation.- 2[game]2 or sport shall mean Cricket, Hockey, Foot Ball, Basket Ball, Tennis, Golf, 3[x x x]3 Volley-Ball, Badminton, Kabbadi, Swimming, Athletics, Base-Ball, Weight Lifting, and any other sport or game the Government may notify.]1
1. Inserted by Act 4 of 1999 w.e.f. 01.04.1997.
2. Substituted by Act 5 of 2006 w.e.f 01.04.2006.
3. Omitted by Act 5 of 2002 w.e.f 01.04.2002. 1[(e1) x x x]1
1. Inserted by Act 9 of 1983 w.e.f. 01.04.1983 and Omitted by Act 9 of 1984 w.e.f
01.04.1984.
(f) “institution” includes a company, society, club or other association of persons by whatever name called; 1[(fa) “2[Additional Commissioner]2” means the 2[Additional Commissioner]2 of Commercial Taxes appointed under the Karnataka Sales Tax Act, 1957.]1
1. Inserted by Act 3 of 1985 w.e.f. 10.01.1985.
2. Substituted by Act 5 of 1993 w.e.f 9.11.1992. 1[(fb) “Joint Commissioner” means the Joint Commissioner of Commercial Taxes appointed under the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957);]1
1. Sbustituted by Act 7 of 1997 w.e.f. 01.04.1997. Entertainments Tax [1958: KAR. ACT 30 768 1[(g) ‘local authority’ means a municipal corporation a city municipal council, a town municipal council, a cantonment board, a town board, a sanitary board, a notified area committee, 2[a 3[Grama panchayat]3]2, as the case may be;]1
1. Sbustituted by Act 14 of 1966 w.e.f. 16.05.1966 by notification Text of the notification is at the end of the Act.
2.. Sbustituted by Act 31 of 1987 w.e.f. 01.04.1987.
3. Sbustituted by Act 18 of 1994 w.e.f. 01.04.1994. 1[(gg) '' Multi System Operator `` means person engaged in the business of receiving and distributing satellite television signals, communication network, including production and transmission of programmes and packages.``]1
1. Inserted by Act 5 of 2002 w.e.f. 01.04.2002.
(h) “notification” means a notification published in the Official Gazette;
(i) “payment for admission” 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 tax is required;
(ii) any payment for seats or other accommodation in a place of entertainment; 1[(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 of the entertainment which, without the aid of such instrument or contrivance, such person would not get;
(iv) any payment for any purpose whatsoever connected with an entertainment which a person 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; 1[ (iv-a) any payment for any purpose whatsoever connected with an entertainment including sponsorship fee and advertisement charges, which is paid to the proprietor or any person connected with conducting or organising such entertainment, 2[with a view to promoted goodwill, brand name or any business interest directly or indirectly which enables entry of any person in to the entertainment]2]1;
1. Inserted by Act 5 of 2001 w.e.f 01.04.2001.
2. Substituted by Act 5 of 2002 w.e.f 01.04.2002. 1958: KAR. ACT 30] Entertainments Tax 769
(v) any payment for admission of a motor vehicle into the auditorium of a cinema known as drive-in-theatre.]1
1. Sub clauses (iii) to (v) inserted by Act 3 of 1985 w.e.f 10.01.1985. 1[Explanation.- “Payment for admission” shall not include any sponsorship fee or advertisement charges paid to the proprietor or any person connected with or conducting or organising any event of sport]1
1. Substituted by Act 3 of 2004 w.e.f 29.01.2004. 1[(ia) “population” means the population as ascertained at the last preceding census of which the relevant figures are published;]1
1. Inserted by Act 16 of 1977 w.e.f 01.04.1979. 1[3[(ib) “place of entertainment”]3 means the place where an entertainment is held and includes the booking office 2[and any place from where the entertainment is provided by means of cable connection from any type of antennae with a cable net work attached to it or cable television]2 and such other place where the accounts and other documents connected with the entertainment are kept.]1
1. Inserted by Act 3 of 1985 w.e.f 10.01.1985.
2. Inserted by Act 11 of 1993 w.e.f 01.04.1993.
3. Substituted by Act 3 of 1998 w.e.f 01.04.1998
(j) “prescribed” means prescribed by rules made under the Act; 1[(k) ‘proprietor’ in relation to any entertainment other than an entertainment referred to in sub-clause (iii) of clause (e) includes any person responsible for the management thereof and in relation to any entertainment referred to in sub-clause (iii) of clause (e) includes any person conducting, organising, sponsoring or patronising any such entertainment.]1
1.Substituted by Act 7 of 1997 w.e.f 01.04.1997. 1[(l) '' Recreation Parlour '' means any place where a game such as bowling, billiards, snooker or the like by whatever name called is provided, for which persons are required to make payment for admission or participation.]1
1. Inserted by Act 5 of 2002 w.e.f 01.04.2002. 1[2A. Instructions to subordinate authorities.- 1[(1)]1 The State Government or the Commissioner, may from time to time issue such orders, instructions and directions to all officers and persons employed in the execution of this Act, as they may deem fit, for the administration of this Act, Entertainments Tax [1958: KAR. ACT 30 770 and all such officers and persons shall observe and follow such orders, instructions and directions of the State Government or the Commissioner:
1. Renumberd by Act 7 of 1997 w.e.f 01.04.1997. 1[(2) All officers and persons employed in implementation of this Act shall observe and follow such administrative instructions as may be issued to them for their guidance by the Joint Commissioner within whose jurisdiction they perform their functions.]1
1. Inserted by Act 7 of 1997w.e.f 01.04.1997.
Provided that no such orders, instructions or directions shall be issued so as to interfere with the discretion of any Appellate Authority in the exercise of its appellate functions.
2B. Power to issue directions regarding jurisdiction.- The Commissioner may by general or special order in writing direct that the powers conferred on an Entertainments Tax Officer of an area by or under this Act, shall, in respect of any specified place of entertainment in such area be exercised by the Entertainments Tax Officer of any other area whereupon the Entertainments Tax Officer of such other area may exercise and perform the same powers and functions in respect of such place of entertainment as the former officer.]1
1. Sections 2A and 2B inserted by Act 20 of 1989 w.e.f 17.04.1989. 1[3. Tax on payment for admission to entertainments.- 2[(1) There shall be levied and paid to the State Government entertainments tax on each payment for admission excluding the amount of tax, to an entertainment,-
(a) specified in sub-clause (i) of clause (e) of Section 2 at 70 per cent of such payment; and
(b) specified in sub-clause (ii) of clause (e) of Section 2 at 3[30 per cent]3 of such payment.]2]1
1. Substituted by Act 14 of 1966 w.e.f 16.05.1966.
2. Sub-section (1) substituted by Act 26 of 2004 w.e.f 1.8.2004.
3. Substituted by Act 7 of 2009 w.e.f 01.04.2009. 3[Table x x x]3 . 1[Proviso x x x]1 . 1. Inserted by Act 21 of 1979 and omitted by Act 5 of 1981 w.e.f 04.04.1981. 1[Provisos x x x]1
1. Inserted by Act 9 of 1983 and omitted by Act 9 of 1984 w.e.f 01.04.1984. 1958: KAR. ACT 30] Entertainments Tax 771 1[(1-A) In respect of entertainments referred to in sub-clause (iii) of clause (e) of Section 2, other than an entertainment on which tax is levied under section 4-E or 4-F, there shall be levied and paid to the State Government on each payment for admission excluding the amount of tax, to such entertainment, entertainments tax at the rate of ten per cent, if such payment for admission, excluding the amount of tax, is not less than fifty rupees.
Provided that no tax shall be levied in the case of admission to a circus 2[or drama]2 or magic show or game or sport, where it involves no participation.]1 3[Provided further that admission to a game or sport involving proprietary teams, that is played for prize moneys and organized on commercial basis shall not be exempted from tax under the first proviso.;]3
1. Substituted by Act 5 of 2006 w.e.f. 01.04. 2006.
2. Inserted by Act 5 of 2007 w.e.f. 01.04. 2007.
3. Inserted by Act 7 of 2009 w.e.f. 01.04.2009.
(2) Notwithstanding anything contained in sub-section (1), 1[and subsection (1-A)]1 2[x x x]2 there shall be levied and paid to the State Government (except as otherwise expressly provided in this Act) on every complimentary ticket issued by the proprietor of an entertainment, the entertainments tax at the appropriate rate specified in sub-section (1) 1[and sub-section (1-A)]1 2[x x x]2 in respect of such entertainment, as if full payment had been made for admission to the entertainment according to the class of seat or accommodation which the holder of such ticket is entitled to occupy or use; and for the purposes of this Act, the holder of such ticket shall be deemed to have been admitted on payment.
1. Inserted by Act 5 of 2001 w.e.f 01.04.2001.
2. . Inserted by Act 21 of 1979 w.e.f 31.03.1979 and Omitted by Act 26 of 1980 w.e.f
11.08.1980. 1[Provided that where the seat or accommodation which the holder of such a ticket is entitled to occupy or use is different from the classes of seat or accommodation inside the auditorium or place of entertainment and for admission to the said seat or accommodation no payment is fixed, the holder of such ticket shall be deemed to be entitled to occupy or use the highest class of seat or accommodation and shall for purposes of this Act, Entertainments Tax [1958: KAR. ACT 30 772 be deemed to have been admitted on payment of the charges for such highest class of seat or accommodation.]1
1. Inserted by Act 36 of 1976 w.e.f 01.04.1976. 1[(3) Not withstanding anything contained in sub-section (1-A) there shall be levied and paid to the state Government on every admission made by the proprietor of an entertainment on payment as defined in sub-clause (iv-a) of clause (i) of section 2, the entertainment tax at the rate specified in subsection (1-A) in respect of such entertainment as if full payment had been made for admission to the entertainment according to the class of seat or accommodation which the person admitted occupies or uses ; and for the purpose of this Act, the person admitted shall be deemed to have been admitted on payment.
Provided that where the admission made to an entertainment whether or not having different classes of seat or accommodation inside the place of entertainment is wholly on payment as defined in sub-clause (iv-a) of clause
(i) of Section 2, the payment made to such entertainment shall be deemed to have been made by the person or persons admitted]1 ]1
1. Omitted by Act 36 of 1976 w.e.f 01.04.1976 and inserted by Act 5 of 2001 w.e.f
01.04.2001. 1[3-A. Additional tax on admission.- In the case of cinematograph shows, in addition to the tax leviable under section 3, there shall be levied and paid to the State Government a tax on each payment for admission to any class at the following rates namely,- Sl. No. Classification of Theatres Amount
(1) (2) (3) 1 Air-conditioned and Aircooled Theatres One rupee on each payment for admission 2 Other Theatres Fifty paise on each payment for admission]1
1. Section 3A inserted by Act 14 of 1966 and omitted by Act 18 of 1997 w.e.f
20.09.1997. Again inserted by Act 7 of 2003 w.e.f 01.04.2003. 1[3B. x x x]1
1. Inserted by Act 36 of 1976 and omitted by Act 13 of 1982 w.e.f 01.07.1982. Again inserted by Act 25 of 1994 w.e.f 27.09.1994 and omitted by Act 7 of 1997 w.e.f
1.4.1997. 1958: KAR. ACT 30] Entertainments Tax 773 1[3-C. Special provision in respect of certain films.- Notwithstanding anything contained in sections 3 and 3-A, no tax shall be levied under the said sections on a cinematograph show of a Kannada, Kodava, Konkani, Tulu or Banjara film which is not a dubbed version of a film of other language, subject to production of a certificate by the proprietor, as may be prescribed.]1
1. Substituted by Act 6 of 2008 w.e.f. 1.8.2008.
(a) in the case of a cinematograph show of a 1[Kannada film (other than a remake or a dubbed version of a film of other language, which has secured a Censor Certificate from the Central Board of Film Certification on or after First day of September, 1993) or a]1 Kodava, Konkani 2[Tulu or Banjara film]2 produced in the State of Karnataka the rates of entertainments tax payable shall be 3[nil]3;
1. Substituted by Act 18 of 1994 w.e.f. 1.4.1993.
2. Substituted by Act 26 of 2000 w.e.f. 14.8.2000.
3. Substituted by Act 5 of 1996 w.e.f. 1.4.1996. 1[Provided that in case of a Kannada Film which is remake of a film of other language, which has secured a Censor Certificate from the Central Board of Film Certification on or before 31st day of March, 2002, no tax shall be levied under 3[sections 3 and section 3-A]3 2[xxx]2]1 4[Provided further that tax at the rate of seventy-five per cent of the tax payable under 3[sections 3 and 3-A]3 shall be levied from 1st day of April, 2002 on a Kannada film which is a remake of a film of other language and which has secured a Censor Certificate from the Central Board of Film Certification.]4
1. Inserted by Act 5 of 2002 w.e.f. 1.4.1996.
2. Omitted by Act 7 of 2003 w.e.f. 1.4.1996.
3. Substituted by Act 7 of 2003 w.e.f. 1.4.2003.
4. Inserted by Act 5 of 2002 w.e.f. 1.4.2002. 1[(b) in the case of a cinematograph show of a Kannada, Kodava, Konkani, or Tulu film produced outside the State of Karnataka and which has secured censor Certificate issued by the Central Board of Film Certification on or before the thirty-first day of December, 1987, the rates of entertainments tax payable shall be 2[nil]2 3[x x x]3.]1 Entertainments Tax [1958: KAR. ACT 30 774 4[Explanation.- x x x]4]3]1
1. Substituted by Act 2 of 1988 w.e.f. 24.11.1987.
2. Substituted by Act 5 of 1996 w.e.f. 1.4.1996.
3. Omitted by Act 6 of 1992 w.e.f. 31.12.1991.
4. Omitted by Act 6 of 1995 w.e.f. 1.4.1995. 1[(c) in the case of a cinematograph show of a Kannada film which is a remake of a film of any other language,—
(i) having been remade in the State of Karnataka after a period of ten years from the date of issue of a certificate by the Central Board of Film Certification to such other language film; or
(ii) which has secured a best feature film award granted by the Central Government or any State Government or has figured in the Indian Panorama section of International Film Festival and has been remade in the State of Karnataka; the rate of entertainments tax payable shall be 2[nil]2.]1
1. Inserted by Act 25 of 1994 w.e.f. 27.9.1994.
2. Substituted by Act 5 of 1996 w.e.f. 1.4.1996.
Provided that where 1[such film has secured, after the first day of April, 1981, a best feature film award granted by the Central Government or any State Government or an Internationally recognised award notified by the State Government,]1 no entertainments tax shall be payable for a period of one year from such date as may be specified by the State Government.]4
1. Substituted by Act 3 of 1985 w.e.f. 10.1.1985. 1[(1A) Notwithstanding anything contained in sub-section (1), where a Kannada, Kodava, Konkani 2[Tulu or Banjara film]2 has secured after the first day of April, 1981 a best feature film award granted by the Central or any State Government or an internationally recognised award notified by the State Government, no entertainments tax shall be payable for a period of one year from such date as may be specified by the State Government.]1
1. Inserted by Act 22 of 1985 w.e.f. 15.2.1986 by notification. Text of the notification is at the end of the Act.
2. Substituted by Act 26 of 2000 w.e.f. 14.8.2000. 1[(2) Notwithstanding anything contained in 2[section 3 3[x x x]3]2, in the case of a cinematograph show of a film other than a Kannada, Kodava, Konkani 4[Tulu or Banjara film]4 which has secured, after the first day of April, 1981, 5[a best feature film award]5 granted by the Central Government or any State Government or an internationally recognised award notified by the State Government, no entertainments tax shall be payable for a period 1958: KAR. ACT 30] Entertainments Tax 775 of six months from such date as may be specified by the State Government.]1
1. Inserted by Act 3 of 1985 w.e.f. 10.1.1985.
2. Substituted by Act 7 of 1997 w.e.f. 1.4.1997.
3. Omitted by Act 18 of 1997 w.e.f. 20.9.1997.
4. Substituted by Act 26 of 2000 w.e.f. 14.8.2000.
5. Substituted by Act 17 of 1988 w.e.f. 14.9.1988. 1[Explanation.- x x x]1
1. Substituted by Act 2 of 1983 and omitted by Act 6 of 1995 w.e.f. 27.9.1994. 1[Explanation.- x x x]1
1. Inserted by Act 7 of 1997 w.e.f. 1.4.1997 and omitted by Act 18 of 1997 w.e.f.
20.9.1997. 1[4. Additional Tax on cinematograph shows.- 2[3[(1)]3 In the case of cinematograph shows, in addition to the tax leviable under 4[Sections 3 and 3-A]4 or the tax leviable under Section 4-A, there shall be levied and paid to the State Government a tax calculated at the following rates, namely:— TABLE Sl. Payment for admission (excluding Rate of tax No. entertainment tax) of a person to the per show highest class of seat or accommodation a. does not exceed five rupees 5[Forty three rupees]5 b. exceeds five rupees but does not 5[Fifty Five exceed fifteen rupees rupees]5 c. exceeds fifteen rupees but does 5[Sixty Eight not exceed twenty rupees rupees]5 d. exceeds twenty rupees 5[One Hundred and Eighteen rupees]5
Provided that in the case of a cinematograph show of Kannada, Kodava, Konkani or Tulu film, in addition to tax leviable under 4[Sections 3 and 3-A]4 the tax payable under this sub-section shall be at the following rates, namely:— Sl. Payment for admission (excluding Rate of tax No. entertainment tax) of a person to the per show highest class of seat or accommodation a. does not exceed five rupees 5[Eighteen rupees]5 b. exceeds five rupees but does not 5[Thirty rupees]5 Entertainments Tax [1958: KAR. ACT 30 776 exceed fifteen rupees c. exceeds fifteen rupees but does 5[Thirty Eight rupees]5 not exceed twenty rupees d. exceeds twenty rupees 5[Forty Eight rupees]5
Provided further that in respect of cinema theatres paying tax in the manner specified in section 4-A, the tax under this section shall be paid at the following rates, namely:— Sl. Total Payment for admission of a person Rate of tax No. to the highest class of seat or per show accommodation a) does not exceed eight rupees 5[Forty rupees]5 b) exceeds eight rupees but does 5[Forty Five rupees]5 not exceed fifteen rupees c) exceeds fifteen rupees 5[Fifty rupees]5
Provided also that in respect of cinema theatres paying tax in the manner specified in section 4-A, the tax payable under this sub-section in respect of cinematograph show of a Kannada, Kodava, Konkani or Tulu film shall be at the following rates, namely:— Sl. Total Payment for admission of a person Rate of tax No. to the highest class of seat or per show accommodation a) does not exceed eight rupees 5[Thirteen rupees]5 b) exceeds eight rupees but does 5[Twenty Five rupees]5 not exceed fifteen rupees c) exceeds fifteen rupees 5[Thirty Eight rupees]2
1. Substituted by Act 13 of 1982 w.e.f. 1.7.1982.
2. Substituted by Act 20 of 1998 w.e.f. 1.4.1998.
3. Renumbered by Act 22 of 1985 w.e.f. 15.2.1986.
4. Substituted by Act 7 of 2003 w.e.f. 1.4.2003.
5. Substituted by Act 26 of 2004 w.e.f. 19.6.2003 and again Substituted by Act 11 of 2005 w.e.f. 1.4.2005. 1[(2) No proprietor of a cinema theatre shall collect or cause to be collected the tax payable under sub-section (1) from the persons admitted to the cinema theatre for the entertainment.]1
1. Inserted by Act 22 of 1985 w.e.f. 15.2.1986. 1958: KAR. ACT 30] Entertainments Tax 777 1[(3) Notwithstanding anything contained in sub-section (1), no show tax shall be payable in respect of a cinematograph show of a Kannada, Kodava, Konkani or Tulu film screened in theatres situated within the limits of any local authority 2[(but excluding a cantonment board)]2 3[or town or village]3 having a population not exceeding fifteen thousand.]1
1. Inserted by Act 2 of 1988 w.e.f. 12.9.1987.
2. Inserted by Act 18 of 1994 w.e.f. 1.4.1994.
3. Inserted by Act 7 of 1990 w.e.f. 1.4.1987. 1[4A. Tax on cinematograph shows in certain places.- (1) In lieu of entertainment tax 2[x x x]2 payable under sub-section (1) of 4[Sections 3 and 3-A]4 2[x x x]2, in the case of cinematograph shows held in cinema theatres situated within the limits of a local authority 3[(but excluding a cantonment board)]3 whose population does not exceed seventy five thousand specified in column (2) of the table below, the proprietor may, at his option and subject to such conditions, as may be prescribed, pay the amount of tax as specified in column (3) thereof,—
1. Inserted by Act 16 of 1977 and substituted by Act 7 of 1997 w.e.f. 1.4.1997.
2. Omitted by Act 18 of 1997 w.e.f. 20.9.1997.
3. Inserted by Act 5 of 2001 w.e.f. 1.4.2001.
4. Substituted by Act 7 of 2003 w.e.f. 1.4.2003. 1[TABLE Sl. Local authority Rate of tax No. population of which 1 2 3
(a) does not exceed twenty-five thousand 2[Five percent]2 of the gross collection capacity.
(b) exceeds twenty-five thousand but 2[Ten per cent]2 does not exceed fifty thousand of the gross collection capacity.
(c) exceeds fifty thousand but does not 2[Fifteen per cent]2 exceed seventy five thousand of the gross collection capacity.]1
1. Substituted by Act 18 of 1997 w.e.f. 20.9.1997.
2. Substituted by Act 11 of 2005 w.e.f. 1.4.2005.
Explanation.- For the purpose of this section, gross collection capacity shall mean the notional aggregate of all payments for admission the proprietor would realise per show if all the seats or accommodation as Entertainments Tax [1958: KAR. ACT 30 778 determined by the licensing authority under the Karnataka Cinemas (Regulation) Act, 1964, in respect of the place of entertainment are occupied and collected at the maximum rate of payment for admission for each class as determined in this behalf by the prescribed authority: 1[Provided that no tax shall be levied under this sub-section on a cinematograph show of a Kannada, Kodava, Konkani or Tulu film which is not a dubbed version of a film of other language, subject to production of a certificate by the proprietor, as may be prescribed .]1
1. Substituted by Act 6 of 2008 w.e.f. 1.8.2008.
(2) After the determination of the gross collection capacity of a cinema theatre, no change or modification either in the number of seats or accommodation or in the rates of payment for admission to such theatre shall be made, unless the proprietor has given fifteen days notice thereof to the prescribed authority and, until the gross collection capacity is redetermined, the proprietor shall pay the tax as previously fixed.
(3) No proprietor of a cinema theatre to which sub-section (1) is applicable, shall collect or cause to be collected any amount either by way of tax or otherwise in excess of the payment for admission taken into consideration for calculating the gross collection capacity of such theatre.
(4) (a) Notwithstanding anything in this section, where a cinematograph film is allowed exemption from payment of tax under sub-section (1), the rates of payment for admission shall be reduced in respect of each admission to the extent of the tax exempted in respect of such payment. Where a proprietor does not reduce the rates of payment for admission, he shall, in addition to any other penalty under this Act, be liable to pay tax as if no exemption from the payment of tax was made under sub-section (1).
(b) Notwithstanding the reduction in the rates of payment of admission under clause (a), the gross collection capacity for the purpose of payment of tax under sub-section (1) shall remain unaltered.
(5) It shall be presumed that the proprietor of an entertainment has conducted all the shows permitted to be conducted by him under the Karnataka Cinemas (Regulation) Act, 1964, unless he produces along with his return, a certificate in the prescribed form, obtained from the prescribed authority that any such show has not been conducted, and for this purpose the prescribed authority shall issue the certificate, after such enquiry as it 1958: KAR. ACT 30] Entertainments Tax 779 deems fit, within ten days from the date of receipt of the application in this behalf.
(6) The option permitted under this section shall continue to be in force till the end of the financial year in which such option is permitted.]1 1[4-AA. Collection of Service Charges.- Every proprietor of a cinema theatre paying tax on cinematograph show under Section 3-A or 4-A, subject to such rules as may be prescribed, may collect as service charges, an amount not exceeding the amount specified in the table below, on each payment for admission to any class, namely:- TABLE Sl. No. Classification of Theatres Amount 1 2 3
(a) Air-conditioned and Aircooled Theatres Upto a maximum of 2[three rupees]2 on each payment for admission.
(b) Other Theatres but excluding Touring Talkies Upto a maximum of 2[two rupees]2 on each payment for admission.
Provided that the collection of amount under this section by the proprietor of any theatre existing on the date of coming into force of this Section, shall be in addition to the payment for admission prevalent immediately before such commencement.]1
1. Section 4AA insered by Act 25 of 2005 w.e.f. 24.8.2005.
2. Substituted by the Act 53 of 2013. W.e.f 01.08.2013 1[4B. Special provision in respect of video shows.- (1) In lieu of the tax payable under 4[sections 3 and 3-A]4, 2[x x x]2 3[or 4]3, subject to such rules as may be prescribed, in the case of video shows, there shall be levied and paid entertainments tax 5[at the following rates: 1 2 3
(i) Within the limits of City Municipal Corporations constituted under the Karnataka Municipal Corporations Act, 1976 and Cantonment Boards Rs.15,000/- per month
(ii) Within the limits of All Municipal Councils constituted under the Karnataka Municipalities Act, 1964 Rs.7,500/- per month Entertainments Tax [1958: KAR. ACT 30 780
(iii) Places other than (I) and (ii) above Rs.5,000/- per month]5
Provided that if the proprietor conducting the video shows has conducted no show on any day or days during a month, proportionate amount of tax paid in respect of such day or days shall be refunded to him:
Provided further that it shall be presumed that the proprietor conducting video shows has conducted shows on all the days of a month unless he produces a certificate in the prescribed form, from the prescribed authority that no show was conducted on any day or days, and for this purpose, the prescribed authority shall issue the certificate, after such enquiry as deemed fit within ten days from the date of receipt of the application in this behalf.]1
1. Inserted by Act 3 of 1985 and substituted by Act 7 of 1990 w.e.f. 1.4.1990.
2. Omitted by Act 18 of 1997 w.e.f. 20.9.1997.
3. Substituted by Act 25 of 1994 w.e.f. 27.9.1994.
4. Substituted by Act 7 of 2003 w.e.f. 1.4.2003.
5. Substituted by Act 5 of 2002 w.e.f. 1.4.2002. 1[4C. Special provision in respect of certain entertainments.- Notwithstanding anything contained in 2[sections 3 and 3-A]2, 3[x x x]3, 4, 4[xxx]4 5[4-B or 4-G]5 and subject to such rules as may be prescribed, there shall be levied and paid entertainments tax at the following rates in the case of entertainment provided with the aid of antennae or cable television to a connection holder on payment of any contribution or subscription or installation and connection charges or any other charges collected in any manner whatsoever namely:— i) Providing entertainment through antennae Twenty Rupees per and cable Television or antennae. month per connection. ii) Providing entertainment through cable Fifteen Rupees per Television exclusively. month per connection.
Provided that no tax shall be payable under this section, if the period of connection provided to a connection holder any month is less then fifteen days]1 6[Provided further that no tax shall be payable under this section, if the proprietor is providing television signals under the Direct To Home scheme:
Provided also that subject to such conditions as may be prescribed, no tax shall be payable under this section, if the proprietor is receiving television signals from a Multi System Operator paying tax under section 4- G.”; 1958: KAR. ACT 30] Entertainments Tax 781
Explanation.- (1)A Multi System Operator providing entertainment through antennae or Cable Television directly to subscribers apart from providing satellite television signals to another proprietor, shall be liable to pay tax under this section in addition to his liability to pay tax under section 4-G.
Explanation.-(2)A proprietor being a Direct To Home service provider providing entertainment through antennae or Cable Television directly to subscribers apart from providing satellite television signals under the Direct To Home scheme, shall be liable to pay tax under this section in addition to payment of any tax liability under section 4-G.]6
1. Inserted by Act 11 of 1993 w.e.f. 1.4.1993.
2. Substituted by Act 7 of 2003 w.e.f. 1.4.2003.
3. Omitted by Act 8 of 1997 w.e.f. 20.9.1997.
4. Omitted by Act 25 of 1994 w.e.f. 27.9.1994.
5. Substituted by Act 5 of 2006 w.e.f. 1.4.2006.
6. Inserted by Act 5 of 2006 w.e.f. 1.4.2006. 1[4D. Composition of tax payable under section 4C.- In lieu of the tax payable under section 4C 2[any proprietor other than a Multi System Operator or a Direct To Home service provider, may]2, at his option and subject to such condition and in such manner as may be prescribed pay a tax with respect to the entertainment provided at the places specified in column (2) of the table below at the rates specified in column (3) thereof. TABLE Sl.No. Places Amount of tax
(1) (2) (3)
1. Bangalore City Municipal 3[Rupees Six thousand Corporation Five hundred per month.]3
2. City Municipal Corporations 3[Rupees Three thousand (other than Bangalore City per month.]3 Municipal Corporation); and Cantonment Board
3. Places other than those at Sl.No. (1) & (2); City, Town or village;
(a) population of which is more 4[Rupees one thousand five hundred than 25,000 per month.]4
(b) population is less than 4[Rupees six hundred 25,000 per month.]4 ]1 Entertainments Tax [1958: KAR. ACT 30 782
1. Section 4D inserted by Act 6 of 1995 w.e.f. 1.4.1995.
2. Substituted by Act 5 of 2006 w.e.f. 1.4.2006.
3. Substituted by Act 5 of 2001 and again substituted by Act 7 of 2003 w.e.f. 1.4.2003. Again Substituted by Act 26 of 2004 w.e.f. 19.06.2003
4. Substituted by Act 5 of 2001 w.e.f. 1.4.2001. 1[4E. Tax on amusement- There shall be levied and collected a tax calculated at the rate of 2[five per cent]2 on each payment for admission to 3[or participation in]3 an amusement. The tax so levied shall be paid by the proprietor. 4[Provided that no tax shall be levied where the payment for admission excluding the amount of tax, is less than fifty rupees.]4
1. Sections 4E, 4F and 4G inserted by Act 5 of 2002 w.e.f. 1.4.2002.
2. Substituted by Act 25 of 2007 w.e.f. 28.8.2007.
3. Substituted by Act 5 of 2006 w.e.f. 1.4.2006.
4. Inserted by Act 7 of 2003 w.e.f. 1.4.2002.
4F. Tax on recreation parlours- There shall be levied and collected a tax calculated at the rate of twenty per cent on each payment for admission to 1[or participation in]1 recreation parlour. The tax so levied shall be paid by the proprietor. 2[Provided that no tax shall be levied where the payment for admission excluding the amount of tax, is less than fifty rupees.]2
1. Inserted by Act 7 of 2003 w.e.f. 1.10.1957.
2. Substituted by Act 5 of 2006 w.e.f. 1.4.2006.
4G. Tax on Multi System operator 1[and Direct To Home service provider]1- Notwithstanding anything contained in sections 4C and 4D, there shall be levied and collected a tax at the rate of 4[2[ten percent]2]4 on the amounts received 3[or receivable]3 by a Multi System Operator towards distributing satellite television signals, communication network, including production and transmission of programmes and packages 1[and by a Direct To Home service provider towards providing television signals under the Direct To Home scheme]1
1. Inserted by Act 5 of 2006 w.e.f. 1.4.2006.
2. Substituted by Act 5 of 2007 w.e.f. 1.4.2007.
3. Inserted by Act 7 of 2009 w.e.f.1.4.2009.
4. Substituted by Act 05 of 2016 w.e.f 01.04.2016. 1958: KAR. ACT 30] Entertainments Tax 783 1[Provided that no tax shall be levied under this section for the period from the 1st day of April, 2002 to 31st day of March, 2006.] 1
1. Inserted by Act 5 of 2006 w.e.f. 1.4.2002. 1[5. Admission to entertainments.- Save as otherwise provided in this Act, no person other than a person who has to perform any duty in connection with an entertainment or any duty imposed upon him by or under this Act or any other law shall be admitted to an entertainment unless the proprietor has with the previous approval of the State Government, 2[or the Commissioner or any officer authorised by the State Government or the Commissioner]2 made arrangements for furnishing returns of the payments for admission to the entertainment, given such security for the payment of the entertainments tax, and in such manner, 3[as may be prescribed or specified by the State Government] 3:
Provided that with the previous approval of the State Government, 2[or the Commissioner or any officer authorised by the State Government or the Commissioner]2 persons may be admitted for payment to an entertainment or a series of entertainments through a barrier or by means of a mechanical contrivance which automatically registers the number of persons admitted.]1
1. Inserted by Act 6 of 1995 w.e.f. 1.4.1995.
2. Inserted by Act 15 of 2011 w.e.f.1.4.2011.
3. Substituted by Act 15 of 2011 w.e.f.1.4.2011.
6. Manner of payment of tax.- 1[(1) 2[Save as otherwise provided in 3[4[sections 5[x x x]5 4A]4 or 4B]3]2The entertainments tax shall be levied in respect of each 3[payment for admission or each admission]3 on a complimentary ticket 6[or pass or invitation]6 and shall be calculated and paid on the number of admissions.
Explanation.- At any time during an entertainment any person or persons found inside the auditorium or place of entertainment without a valid ticket or complimentary ticket 6[or pass or invitation]6 shall be deemed to have been admitted by the proprietor for payment.
(2) The entertainments tax shall be due and be recoverable from the proprietor.]1
1. Sub-sections (1) and (2) Substituted by Act 14 of 1966 w.e.f. 16.5.1966.
2. Inserted by Act 16 of 1977 w.e.f. 1.4.1979.
3. Substituted by Act 3 of 1985 w.e.f. 10.1.1985.
4. Substituted by Act 25 of 1994 w.e.f. 27.9.1994.
5. Omitted by Act 7 of 1997 w.e.f. 1.4.1997. Entertainments Tax [1958: KAR. ACT 30 784
6. Inserted by Act 5 of 2001 w.e.f. 1.4.2001 1[(3) Where the payment for admission to an entertainment is made wholly or partly by means of a lumpsum paid as a subscription or contribution or sponsorship fee or advertisement charge