The Chennai Corporation will start collecting entertainment tax from amusement parks, horse race clubs, recreation parlours and cricket clubs.
As the Corporation has been empowered to levy entertainment tax within its jurisdiction with effect from July 1, business operators in various categories of entertainment have been asked to file returns by the end of this month. Corporation Commissioner D. Karthikeyan has ordered zonal assistant revenue officers and entertainment tax officers to verify, check and sign the returns filed by the proprietors of the respective entertainment events.
The entertainment tax officers will start conducting regular inspections to prevent tax evasion. “The proprietors of the entertainment events will have to file returns every month,” said an official.
The entertainment tax will be collected by way of demand draft or cheque in favour of the Revenue Officer, Corporation of Chennai. The financial management unit will open a separate account and maintain the account for entertainment tax.
The revenue officer, additional revenue officers, zonal officers and assistant revenue officers of Chennai Corporation will have the responsibility to supervise and control entertainment tax in the city. The Corporation will collect two-fifth of the payment for horse race if the ticket is more than ₹1.50.
VGP Golden Beach is the only amusement park in the city limits. The proprietor would have to pay 10% of the admission fee to the amusement park.
Proprietors of recreation parlours would have to pay 20%. Organisers of cricket tournament conducted by the Indian Premier League, Champions League Twenty20 conducted by the Board of Control for Cricket in India would have to pay 25% of the gross payment for admission.
The levy is based on Tamil Nadu Local Authorities Entertainment Tax Act, 2017 and the government has also issued the Tamil Nadu Local Authorities Entertainment Tax By-Laws 2017.
The contentious issue of levying 30% entertainment tax on cinemas will be resolved at a meeting on Monday. The rate of entertainment tax is expected to be reduced, sources said.