Excise Department
 

Entertainment Tax Department


The Department regulates the entertainment activities in the N.C.T. of Delhi as per the provisions of  The Delhi Entertainments and Betting Tax Act., 1996. Entertainment means any exhibition , performance, amusement , game, sport or race, (including horse race) and cinematographic exhibitions. The liability to collect entertainment tax from the patrons and to deposit the same with the Government lies with the proprietors / organizers of entertainments. Cinemas are the main source of  revenue from Entertainment Tax and the rate of tax on entry tickets to cinematographic exhibitions is thirty (30%) percent .

The Entertainment Tax Department under the Commissionerate is considered to be an important source of revenue for the Govt of Delhi, but it's equally important contribution is towards the promotion of ancient Indian arts, culture, and also sports by granting tax exemption.

            It is mandatory to obtain  permission from the Department before organizing any entertainment programme. Details of the different type of programmes are given below:-

I           TAX PAID PROGRAMMES : Where entry to an entertainment is through priced tickets , the patron has to pay entertainment tax at the rate of 25% of the entry charges. The organizer of the programme has to obtain prior permission from the Department upon making an  application in Form-5 and the full house  tax has to be deposited  in advance . 

II            INVITEE PROGRAMMES :  Where entry to a programme is only through  invitation cards, an application has to be made by the organizers in Form-6 alongwith an affidavit of the organizer, a sample of the invitation card and the details of the invitees.             

III         TAX EXEMPTED PROGRAMMES: The Government also grants exemption from the payment of entertainment tax for the conduct of entertainment programmes where the objective is to promote philanthropic, charitable or religious activities. This requires an application to be made in Form-14 alongwith a copy of the certificate of registration of the applicant Society/Trust , the audited Balance Sheets of the previous three years,  printerís certificate and information  about the core activities of the Society/Trust.           

            In addition , the Government of N.C.T. of Delhi has granted permanent exemption from the payment of entertainment tax to all those Societies which are registered in Delhi under the Societies Registration Act, 1860 as well as those Trusts which are registered with the Commissioner, Income Tax in Delhi, for the purpose of organizing drama performances including plays, ballets,  puppetry shows etc. To avail of such exemption, the registered Societies/Trusts should be primarily engaged in the promotion of Indian art, culture or literature .  The Government has also granted permanent exemption from the payment of entertainment tax to magic shows and circus performances provided prior information of the same is given to the department and 50%  discount on the price of the tickets is given to school students on the production of identity cards , in respect of circus performances . 

 

 

Bowlling Alley
Bowling Alley : An Entertainment Tax Source .

There is also a provision to grant tax exemption to films which have received National & International awards. Entertainment shows organised to promote the cause of education, philanthropy and sports are also granted tax exemptions. Inspite of granting liberal exemptions, the revenue collection by the department has been increasing every year.

The detail of the yearwise exemption vis a vis revenue collection are given below:-

Year  Exempted Shows Exempted Films Revenue Collections
(in crores)
1994-95 96 6 30
1995-96 66 1 32
1996-97 54 9 36
1997-98 20 6 40
1998-99 24 11 44
1999-2000 32 12 48
2000-2001 35 7 47.81
2001-2002 35 5 50.48
2002-2003 28 6 51.49

IV     AMUSEMENT PARKS/VIDEO GAME PARLOURS ETC   : Amusement  parks , video game parlours , bowling alleys and billiards/pool joints also come within the ambit of the Entertainment Tax Department.  All these entities are required to obtain prior permission from this Department before commencing their operations. Patrons have to pay entertainment tax at the rate of 25% of the admission charges for gaining entry to these entertainment venues  except video game parlours where the rate of tax is Rs.50/- per machine per week  in case of a token of Re.1/- is used.   

All children below 17 years of age, wearing school uniforms or carrying valid school Identity Cards have been exempted from the payment of entertainment tax for facilities used in fun parks in National Capital Territory of Delhi.   

V.            CABLE TELEVISION NETWORKS : Entertainment also includes entertainment through cable service and this industry is the second major source of entertainment tax. The proprietors of cable television networks are liable to pay entertainment tax at the rate of Rs.20/- per subscriber per month. The hoteliers providing cable service in their rooms have to pay tax at the rate of Rs.50/- per room per month.  Further, obtaining the permission of the Commissioner, Entertainment Tax, is mandatory for operating a cable television network and for providing cable service in hotels or guest houses.  

VI.            BETTING TAX : Government also receives revenue from the Delhi Race Course where betting on horse racing in respect of both on-course and off-course races takes place. Bets can be placed by the general public either with the bookmakers or in computers which are called totalizators .The stewards of the Club are responsible for collecting betting tax at the rate of the 20% and for depositing the same with the Department in cases where people place bets at the totalizators.  For bets placed with the bookmakers, the bookmakers are responsible for collecting and depositing betting tax at the rate of 10% on all sums of money placed by way of bets with them.

 

Cinema Halls
Cinema Halls : Major Entertainment Tax Source

 

Computerised Ticketing
Computerised Ticketing

To impart ease and efficiency to tax collection, use of information technology is being liberally resorted to. Use of the Computerised ticketing in the cinema halls with online data transmission to the Entertainment department is a step in this direction.

In the year 1997-98 the number of cinema halls functioning in Delhi was 68, in the year 1998-99 it was 63, while in the year 1999-2000 it has come down to 60 and as on date the number is 55.

List of Cinema Halls (Click here) 

District Wise List of Cable Operators (Click on the district given below)

 

To download the forms prescribed under various rules click below

Application for NOC for an Invitee Entertainment Programme
Application for exemption from Entertainment Tax
Check List for request of Grant of exemption from payment of Entertainment Tax

For other specific details, kindly contact the

Entertainment Tax Officer
Excise, Entt. & Luxury Tax Department,
L-Block, I.P. Estate,
New Delhi-110 002
Phone :  23370947
Emailcexcise@nic.in

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