T.N. govt. exempts drama from the ambit of leisure tax

The Tamil Nadu authorities has partially revoked its determination and exempted drama from the ambit of the leisure tax imposed by native our bodies. The Municipal Administration and Water Supply Department has exempted drama performed on the premises of any establishment or in every other locations from the legal responsibility of entertainments tax payable beneath the Tamil Nadu Local Authorities Entertainments Tax Act, 2017.

The State authorities had in December final 12 months tabled a Bill within the Assembly that sought to levy and accumulate a ten% leisure tax for live shows, dramas, reveals, or every other occasion performed by an establishment on cost for admission. The House adopted the Bill that month and the Governor granted his assent to the laws in April this 12 months.

While transferring the Bill, the State authorities mentioned that the 2017 Act offered for native our bodies to levy and accumulate tax on sure specified leisure and amusement occasions, however there was no enabling provision for levy and assortment of leisure tax on live performance, dramas, present, or every other occasion performed by any establishment, together with an academic establishment, on cost for admission.

The laws additionally caused appropriate provisions for levy and assortment of leisure tax for these occasions additionally ‘on the charge of 10% on every cost for admission’. The AIADMK had opposed the Bill when it was moved within the House.