The kerala Local Authorities Entertainments Tax Act, 1961

401 ACT 20 OF 1961 THE KERALA LOCAL AUTHORITIES ENTERTAINMENTS TAX ACT, 1961. CONTENTS Preamble. Sections. 1 Short title, extent and commencement. 2 Definitions. 3 General provisions regarding the levy of the tax and the rale of tax. 4 Composition and consolidated payment of tax. 6 Admission of persons to entertainments subject to tax. 6 Manner of payment of tax. 7 Entertainment exempted from payment of tax. 8 Manner of recovery of tax and fines under the Act. 9 Inspection by Local Authority. 10 Penalty for non-payment of tax. 11 Power of the Government to make rules. 12 Power of Local Authority to make bye-laws. 13 Repeal and Savings. ACT 20 OF 1961 THE KERALA LOCAL AUTHORITIES ENTERTAINMENTS TAX ACT, 1961* An Act to unify and amend the law relating to the imposition and collection of taxes on amusements and other entertainments in the State of Kerala. • Preamble.—WHEREAS it is expedient to unify and amend the law relating to the imposition and collection of taxes on amusements and other entertainments m the State of Kerala; BE it enacted in the Twelfth Year of the Republic of India as follows: — 1. Short title extent and commencement.—(1) This Act may be called the Kerala Local Authorities Entertainments Tax Act, 1961. (2) It extends to the whole of the State of Kerala. (3) It shall come into force on such date as the Government may, by notification in the Gazette, appoint. * Published in,the Gazette Extraordinary dated 3rd July 1961. '-W V V 'tin n 2. Definitions —In this Act, unless the context otherwise requires— » * (1) ‘admission’ includes admission as a spectator or as one of an audience and admission foi the purpose of amusement by taking part in an entertainment; (2) ‘admission to an entertainment’ includes admission to any place in which the entertainment is held; (3) ‘agriculture’includes horticultuie and breeding of animals of every description; (4) ‘entertainment’ includes any exhibition, performance, amuse- ment, game, sport or race to which peisons are admitted for payment; (5) ‘institution4 includes a company, society club or other association of persons by whatever name called, (6) ‘Local authority means— • ' I (a) in any City, the Corporation of that City; ' * * * * * • i i *» . ^b) in any Municipal area, the Municipal Council concerned; t - M >' /t , ;•>! •( (c) m any area within the jurisdiction of a Panchayat, the Pan- chayat concerned; ,, , (7) ‘payment for admission’ includes— (a) 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 rate of tax is required; ° ' s ’ ‘ • » I I c . . ......................... (b) any payment for seats or other accommodation in a place of entertainment; and (c) 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. (8) ‘proprietor’ in relatroh to any entertainment includes any person responsible for the management thereof. A I I 3. General provisions regarding the levy of the tax and the rate of tax. —Any local authority may levy a tax (hereinafter referred>\to ^svth<; entertainments tax) at a rate not less than ten per cent and not more than twenty five per cent on each payment for admission to any entertainment. ' ‘ " ' - - - , 4. Composition and consolidated paymentjof tax.—On the application of the proprietor of any entertainment m respect of which the entertainments tax is payable under section 3, the local authority may, subject to1 such rules as may be made b> the Government in this hphalf,.- compound the tax payable in respect of such entertainment for a consolidated payment. I / * l ( 463 5. Admission of persons to entertainments subject to tax.—(1) Save m the cases referred to in section 4, no person shall be admitted for payment to any entertainment where the payment is subject to entertainments tax, except— (a) with a ticket stamped with an impressed, embossed, engraved or adhesive stamp issued by the local authority indicating the proper tax for such ticket; or (b) in special cases, with the approval of the local authority, through a barrier which, or by means of a mechanical contrivance which, automatically registers the number of persons admitted, unless the proprietor of the entei tamment has made arrangements approved by the local authority for furnishing returns of the payments for admission to the entertainment and has given security approved by the local authority for the payment of the entertainments tax. (2) Nothing contained in sub-section (1) shall be deemed to preclude the local authority from lequiring security from the pioprietor of an entertainment foi the payment of the entertainments tax many other case. 6. Manner of payment of tax—^1) The entertainments tax shall be levied in respect of each person admitted for payment, and in the case of admission by ticket, shall be paid by means of a ticket referred to in clause (a; of sub-section (1) of section 5, and in the case of admission otherwise than by ticket, shall be calculated and paid on the number of admissions. ' ^ (2) The entertainments tax in the case of admission otherwise than by ticket shall be recoverable from the proprietor. (3) Where the payment for admission to an entertainment is made wholly or partly by means of a lump sum paid as a subscription or contribution to any institution, or for a season ticket or for the tight of admission to a series of entertainments or to any entertainment during a certain period of time, the entertainments tax shall be paid on the amount of the lump sum, but where the local authority is of the opinion that the payment of a lump sum or any payment for a ticket represents payment for other privileges, rights or purposes besides the admission to an entertainment or covers admission to an entertainment duungany period during which the tax has not been in operation, the tax shall be levied on such ambunt as appears to the local authority to represent the right of admission to entertainments in respect of which the entertainments tax is payable. 7. Entertainment exempted from payment of tax.—(1) The entertainments tax shall not be levied on payments for admission to any entertainment where the local authonty is satisfied— (a) that the entertainment «s of a wholly educational character ; or (b) that the entertainment is provided for purposes which are wholly or partly educational, cultural oi scientific by an institution not Conducted or established for profit ; or 464 (c) that the entertainment is provided by an institution not conducted for piofit and established solely for the purposes of promoting public health or the interests of agriculture or a manufacturing industry, and which consists solely of an exhibition of articles which are of mateua! interest in connection with questions relating to public health or agriculture, or of the products of the industry for promoting the intei ests of which the institution exists or of the materials, machinery, appliances or food stuffs used in the pioduction of those products ; or (d) that the whole or the net proceeds of the entertainment is devoted to philanthropic, religious or charitable purposes. (2) Any dispute as to whether an entertainment is of the character referred to in any of thec’.auces of sub-section (1) shall be leferred to the District Collector, whose decision shall be fail. (3) The Government may in consultation with the local authority concerned, by Older, exempt any particular entertainment or class of entertainments from liability to the tax. The local authonty shall have power to grant exemption in any other case subject to the previous sanction of the Government. 8. Manner of recovery of tax and fines under the Act.—(1) Any amount due on account of the entertainments tax may be recovered by the local authority in the same manner as any tax payable to the local authority. (2) Any fine imposed under this Act or rules or bve-laws made thereunder shall be recovered in the manner provided in the Code of Criminal Procedure 1898, for the lecovery of fines and shall on recovery be paid to the local authority concerned to be applied for the general purposes of such authority. 9. Inspection by Local Authority. (1) Any officer authorised by the local authority in this behalf may enter any place of entertainment while the entertainment is proceeding and any place ordinarily used as a place of entertainment at any reasonable time, with a view to seeing whether the provisions of this Act or any iules made thereunder are being complied with. (2) If any person prevents or obstructs the entiy of any officer so authorised, he shall, in addition to any other punishment to which he is liable under any law for the time being in force, be liable on conviction before a Magistrate to a fine not exceeding two hundred rupees. (3) Every officer authorised under this section shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code. 10. Penally for non-payment of tax.—(I) If any oerson is admitted toi payment to any place of entertainment and the provisions of section 5 are not complied with, the pioprietor of the entertainment to which such peison is admitted shall, on conviction by a Magistrate, be liable in respect of each such offence to a fine not exceeding two hundred rupees and shall m addition be liable to pay any tax which should have been paid. ♦ 465 (2) Without piejudice to the provisions of sub-section (1) any officer authonsed by the local authoiity m this behalf may entei any place of entertainment while the entertainment is proceeding, and any place ordinarily used as a place of entertainment at any reasonable time, and if satisfied that the provisions of section 5 are not complied with, by order in writing prevent the further use of such place for the purposes of any entertainment: Provided that before preventing the further use of the place for the purpose of the entertainment the proprietor of the entertaiment shall be given a reasonable opportunity to show cause against the pioposed action. (3) If the order under sub-section (2) is not compiled with, the officer may request the officer in charge of the police station having jurisdiction over the place to prevent the further use of such place for the puipose of any entertainment and the officer in charge of the police station shall be bound to comply with the request. 11. Power of the Government to make rules.—(1) The Government may make rules to carry out>aH or any of the purposes of this Act, not in- consistent therewith. (2) In particular and without piejudice to the generality of the foiegoing power they may make rules— (a)for the composition and consolidated payment of tax undei section 4; and (b) for the presentation and disposal of applications for exemp- tion from payment of the entertainments tax. (3)In making any rules the Government mav provide that a breach thereof shall be punishable with fine which may extend to oi'^ hundred rupees. (4) All rules made under this Act shall be laid foi noi less than fourteen days before the Legislative Assembly, as soon as possible after they are made and shall' be subject to such modification whether by way of repeal or amendment, as the legislative Assembly may make during the session in which they are so laid or the scsion immediately follow* ing. 12. Power of Local Authority to make bye-laws. — (!) Any local autho- rity may make bye-laws not inconsistent with this Act or any rules made thereunder— (a) for the supply and use of labels oi stamped or embossed tickets or for the stamping or embossing of tickets sent to be stamped or embossed and for securing the defacement of labels when used; (b)for the use of tickets covering the admission of more than one person and the calculation of the tax 'hereon and for the payment of the tax on the transfer from one part of a place of entertainment to another and on payment for seats or other accommodation; (c) for controlling the use of barriers or mechanical contrivances (including the prevention of the use of the same barrier or mechanical conti ivance for payments of a different amount) and for securing proper records of admission by means of barriers or mechanical contrivances; 34/4095 466 (d) for the checking of admissions, the keeping of accounts and furnishing of returns by the propiietors of entertainments to which the provisions of section 4 are applied or m respect of which the arrangements approved by the local authority for furnishing returns are made under section 5 , (e) for the renewal of damaged or spoiled labels , (f) for the keeping of accounts of all labels used under this Act; (g) for the regulation of the time and place of holding an enter- tainment and supervision thereof ; (h) for the regulation of the time and mode of collecting the tax under this Act, and (i) in general, for carrying out the purposes of this Act. (2) In making a byc-law, the local authority may provide, that a breach thereof shall be punishable with fine which may extend to fifty rupees and m case of a continuing breach with fine which may extend to fifteen rupees for every day dunng which the breach continues after conviction for the first breach. (3) All such bye-laws shall have effect when they have been approved by the Director of Local Bodies or such othci officer not below the rank of a Deputy Director of Local Bodies as may be authorised by him m that behalf and published in the Gazette, provided that in the case of the bye-laws made by a Municipal Corpoiation, the approval ihall be that of the Government. 13. Repeal and Savings—The Travancore-Cochin Local Authorities Entertainments Tax Act, 1951 (Act VI of 1951) and the Madras Enter- tainments Tax Act, 1939 (Act X of 1939) as in force in the Malabar District leferred to in subjection (2) of section 5 of the States Reorgani- sation Act, 1956 (Central Act 37 of 1956) are hereby repealed. Provided that any notification, order, rule or bye-law issued or made under the repealed Acts, shall, so far as it is not inconsistent with the pi ovisions of this Act, continue in force and be deemed to have been made or issued under the pi ovisions of this Act, unless and until it is superseded by any notification, order, rule or bye-law made or issued under this Act. 401 'tin 34/4095