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Entertainment tax in India signifies the tax paid by the entertainment industry in India. The entertainmenttax in India is usually applicable for large-scale entertainment shows, private festivals that are sponsored,movie tickets, video game arcades, and amusement parks among others.Entertainment activities include commercial movie/theater shows, games, amusement parks, exhibitions,celebrity stage shows, any kind of sports such as horse racing, and exhibitions. The entertainment taxdepartment looks after the tax payable for the entertainment activities being performed in various placesacross the country. The entertainment tax department is located in Delhi and works under the stipulation of

The Delhi Entertainment and Betting Tax Act, 1996. The organizers or proprietors of the entertainmentshows are responsible for the entertainment tax in India.

They collect the tax from the sponsors and deposit it to the Government of India. One of the highest revenueearning sectors from tax in entertainment industry is cinema. With every ticket, a certain amount of tax istagged which is paid while buying the movie tickets and is included in the price of the tickets. The entrytickets to any cinematographic exhibitions have the entertainment tax included in it, which is 25-30 percent.

The entertainment department is a major source of revenue for the Government of India. It also has a greatcontribution towards the publicity of Indian arts that portrays ancient culture and various sports. This is doneby granting tax-free benefits to the same. The organizers of any entertainment shows will have to seek thepermission of the Entertainment Tax Department before putting up any commercial shows. Theentertainment tax in India is levied upon the organizers or proprietors depending on the kind of shows beingorganized. There are a range of tax schemes for various entertainment programs. These are as follows:

Tax schemes designed for amusement parks Tax-paid programs Programs based on tax exempted sectors Tax programs on cable television networks Tax for various invitee programs Tax on entertainment betting Tax on video parlors

To alleviate the tax generating program, a series of technologies has been introduced in the entertainmenttax department. For example, the computerized ticket booking system has been incorporated for bookingmovie tickets along with the online data transmission in the entertainment industry. The more advanced theentertainment industry is becoming the tax rate is increasing at a proportional rate. Implementation of innovative technologies for an easier access for the customers demands for sufficient entertainment tax ratedepending on the revenue. Customers mostly look for convenience and less hazardous tasks while going for any entertainment program and so faster access would definitely attract more customers.

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Sr No State Entertainment Tax Applicable onGross Tkt Value

1 Maharashtra 45%

2 Gujarat 20%

3 Delhi 20%

4 Uttar Pradesh 60%

5 Punjab 0%

6 Haryana 30%

7 J&K 0%

8 Himachal Pradesh 0%

9 Andhra Pradesh 20% (15% for Telegu)

10 Karnataka 30%

11 West Bengal 30%

12 Assam 15% if Ticket value less than Rs 20.

20% if ticket value more than Rs 20

13 Orissa 25%

14 Bihar 50%

15 Jharkhand 110%

16 TN 15% (Nil for Tamil Film)

17 Kerala 30%

18 Rajasthan 0%

19 MP 20%