The Kerala Local Authorities Entertainments Tax Act, 1961 (No.20 of 1961)

.... 401 ACT 20 OF 1961 THE KERALA LOCAL AUTHORlfiES ENTERTAINMENTS TAX ACT, 1961. Preamble. Sections. CONTENTS I Short title, extent and commencement. 2 Definitiom. 3 General prOVISlOns regardmg the levy of the tax and the rate of tax. 4 Composition and consolidated payment of tax. C) 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 relat&ng to the imposztion and collectwn of taxes on amusements and other enterlatnments zn the State of Kerala. • Preamble.-WHEREAS tt ts expedient to umfy and amend the law relating to the tmposthon and collection of taxes on amusements and other entertamments m the State of Kerala; BE it enacted in the Twelfth Year of the Repubhc 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. I (3) It shall come mto force on such date as the Government may, by notification m the Gazette, appoint. * Published in :the Gazette Extraordmary dated 3rd july 1961. v v ,• fj 2. Defimtwns -In th1s Act, unless the context otherwise requires- •. (I) 'admission' mcludes admissiOn as a spectator or as one of an aud1ence and adrruss1on fo1 the purpose of amusement by takmg part in an entertainment; (2) 'admiS5ion to an entertainment' mcludes admiss1on to any place m wh1ch the entertamment is held; {3} 'agriculture' mcludes horticultUI e and breedmg of ammals of every description; (4) 'entertamment' mcludes any exlubition, performance, amuse­ ment, game, sport or race to wh1ch pe1sons are admitted for pay­ ment; (5) 'mstitution' includes a compan}, !lociety club or other asso­ ciation of persons by whatever name called, (6) 'Local authority means- ' 'I (a) in any C1ty, the CorporatiOn of that City; < l I I I I I ... .. \b) in any Municipal area, the Municipal Council concerned; and h ~ I .. [I{ (c) many area withm the jurisdiction cha•at concerned; I 1• , , U , , Is I (7) 'payment for adm1ssion' mcludes-:- J t I l f J ')I ~ l of a Pancha yat, the Pan- (a) any payment made by a person who, havmg been admitted to one part of a place of entertamment, 1S subsequently admitted to another part thereof. for admission to wh1ch a payment mvolvmg a tax Or a h1gher ra~e ?f taX ,iS f<;qUJre~ j I . f • ' { •• • • •• • .... (b) any payment for seats or other accommodatiOn in a place of entertammem; and ' I ' ' \_. I . • ' ' , . ' " 1'\ 0\ i) (c) any payment for any purpose. whats,oever conqected with an entertainment which a person. 1s requ1red 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. • I I • • I ' 'lr J J ) '•1 • ~ (8) 'proprietor' in re!atroh to any entertainment includes any person responsible for the management thereof. A I I 1 3. General promszons regarding the levy of the tax and the rate of tax.~Any 10Ca:l a:uthority may Ie.vy a tax (hereinafter r~feo:ed,,to {1-S,tl\~. ~ntertain­ ments tax) at a rate not ·Ies) than ten per ~ent ~nd.not mQre th,an twenty five per cent on each payment for admiSSion to any entertainment. J \ 'I~ _, 1_. ~ -t . • 4. Compositton and consolidated payment, of tax.-On the app!i~tion of the propnetor of any entertainment m respect of which the entertain­ ments tax is payable under section 3, the local au~hority·may, subject to• such rules a~ may be. made b} the Governm~n~ .m this q{!'l\alf,. com­ pound the tax payable m respect of such entertainment for a consoli­ dated payment. I • i6S 5. Admission of persons to CTiterf'finmcnts subject to tax.-(!) Save m the cases referred to in section 4, no person shall be adm1tted for payment to any entertamment where the payment IS subject w entertainments tax, except- (a) w1th a ticket stamped with an impressed, embossed, engraved or adhestve stamp tssued by the local authontv md1cating the proper tax for such ticket; or (b) m special cases, with the approval of the local authority, through a harner which, or by means of a mechanical contrivance which, automatically regu.ters the number of persons admitted, unless the propnetor of the entet tamment has made arrangements approved by the local authonty for furm~hmg returns of the payments for admission to the entertainment and has giVen secunty approved by the local authonty for the payment of the entertainments tax. (2) Nothmg contamed in sub-sectwn (I) shall be deemed to pre­ clude the local authority from tequirmg secunty from the p10prietor of an entertainment fm the payment of the enterLammcnts tax many other case. 6. Manner of payment of tax-~ I) The entertainment~ tax shall he levied in respect of each person admitted for payment, and m the case of admi~sion by ticket, shall he patd by means of a ticket referred to in clause ta; ofsub-section (1) of section 5, and m the case of admission otherwise than by t1cket, shall be calculated and paid on the number of adm1ssions. ' , (2) The entertainments tax in the case of admission otherwise than by ticket shall he recoverable from the proprietor. (3) Where the payment for admission to an entertamment is made wholly or partly by means of a lump ~urn pa1d as a subscnption or contribution to any mstitution, or for a season ticket or for the 1 ight of admission to a serie, of entertainments or to any entertamment during a certain penod of tlme, the entertainments tax shall he pa1d on the amount of the lump sum, hut 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 pnvileges, nghts or purposes besides the admission to an entertainment or covers adnm~ion to an entertainment dlll mg any period durmg wh1ch the tax has not been m operation, the tax shall bP. levied on such am6unt as appears to the local authonty to represent the right of admhsion to entertammcnts in respect of which the entertam­ ments tax is payable. 7. Entertaznment excmptedjrom payment oftax.-(1) The entertainments tax shall not be levied on payments for admission to any entertainment where the local auth011ty JS sati~fied- (a) that the ente"rtainment is of a wholly educational character; or {b) that the entertamment is provided for purpose~ wh1ch are wholly or partly educational, cultural 01 scientific by an institution not conducted or established for profit ; or \ ----- -----. - -\-- (c) that the entertainment is prov1ded by an institution not conducted for p10fit and ~tablished ~olely for tl•·- purposes of promoting pubhc health or the interests of agriculture or a manufacturmg mdustry, and whtch com1sts solely of an exhibition of articles which are of mate11al interest in connection with quest1ons relatmg to public health or a~nculture, or ofthe products of the industry for promotmg the mte1ests of which the institution exist~ or of the materials, machmery, apphances or food stuffs used m the p10duction of those products ; or (d) that the whole or the net proceeds of the entertainment is devoted to philanthropic, rehgious or charitable purposes. (2) Any dispute as to whether an entertamment is of the character referred to in any of the clauces of sub-~ection ( 1) ~hall be 1 eferred to the Dtstrict Collector, whose dec1swn shalJ be fa1l. (3) The Government may m consultatiOn with the local authonty concerned, by 01der. exrmpt any particular entertainment or cla~s of entertainments from habilitv to the tax. The local auth011ty shall have power to grant exemption in any othn case subject to the previous sanction of the Government. 8. Manner of recovery of tax a11d fznes under the Act.-(!) 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 1mposed ur.der tim Act or rules or bve-laws made thereunder shall be recovered m the manner provided in the Code of Criminal Procedure 1898, for the 1 ewvery of fines and shdl on recovery be p.:1id to the local authority concerned to be applied for the general purpo~es of such authority. 9. ltnpection by Local Authonty. (1) Any officer authorised by the local authority in this behalf may enter any place of entertainment while the entertamroent IS proct>eding and any place ordmanly u~ed as a place of entertamment at .:1ny rca~onable ume, with a v1ew to secmg whether the provisiom of this .Act or any lUles made thereunder are being complied w1th. (2) If any person prevents or obstructs the ent1 y of any officer so authorised, he shall, m addition to any other pumshment to wh1ch he is liable under any law for the ume being m force, be !table on convic­ tion before a Magistrate to a fine not exceeding two hundred rupees. (3) Every officer authori~d under this section shaH be deemed to be a publ1c servant Within the meaning of section 21 of the lnd1an Penal Code. 10. Penal~ for 11012-paymertl of tax.-( 1) If any oerson 1s adm1tted 101 payment to any place of entertamment and the proviSIOns of section 5 are not complied with. the p10pnetor of the entertammcnt to whilh such pe1 son is adxmtted shall, on conviction by a Magistrate, be liable in re~pect of car:h such offence to a fine not exceedmg two hundred rupees and shall m addition be liable to pay any tax v..luch should have been paid. I i I I I I ! I -465 (2) Wrthoul prejudice to the provrs10ns of bub-section (!) any officer autllOIISed by the local auth01 ity m this behalf may ente1 any place of entertamment while the entertamment IS proceed111g, and any place ordmanly used as a place of entertainment at any reasonable ttme, and rf ~atisfied that the prov1sions of section 5 are not complied wuh, by order m writmg pre\ent the further use of such place for the purposes of any entertainment: Provided that before preventing the funher use of the place for the purpose of the entertainment the proprietor of the entertatment shall be given a reasonable opportdmty to show cause agamst the p1oposed action. (3) If the order under sub·sectwn (2) ~~ not compiled with, the officer may request the officer m charge of the pohce station havmg junsd1ction over the place to prevent the further use of such place for the pUI pose of any entcrtarnmen t and the officer m charge of the pohcc ~tat1on shall be bound to comply with the request. II. Power of the Government to make rules.- (I) The Government may makt" rules to carry out -a\ I or any of the purposes of th1s Act, not in­ consist('nt therewith. (2) In particular and without pleJUdice to the generality of the f01egoing power they may make rules- (a) for the composition and comohdated payment of tax undf"I section 4; and (b) for the presentation and dr~posal of apphcat10ns for exemp­ tion from pa>ment ofthe entertamments ta>... (3) In making any rules the Government mav provide that a breach thereof shall be pumshabie with fine which may extt"nd to o:'" hundred rupees. (4) Ail rules made under thrs Act shall be la1d foi nol less than fourteen days before the l cg1slatlVC Assembly, ~s soon as poss1ble after they are made and shall' be ~ubject to such modrfication whether by way of repeal or amendment, as the legislative Assembly may make during the se~sion in wh1ch they are so laid or the ses~ion immediately follow· ing. 12. Power of Local Authorzty to make bye-laws.- (I) Any local autho­ rity may make bye-Jaws not inconsistent w1th this Act or any rules made thereunder- ( a) for the supply and use of labels 01 stamped or embossed tickets or for the stampmg or embossing of t1ckets ;ent to be stamped or embo~sed and for securing the defacement of labels when used; (b) for the use of tickets coverirg 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 othtT accommodation; (e) for controlling the use of barriers or mechanical contrivances (including the prevention of the use of the same barrier or mechanical contrivance 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 prop1 ietors of entertainments to which the proviSions of section 4 are applied or m respect of wlHch the arrange­ ments approved by the local authonty for furnishmg returns are made under section 5 , (e) for the renewal of damaged or spoiled labels , (f) for the keepmg of accounts of all labels used under this Act; (g) for the regulatiOn of the time and pldce of holding an enter- tainment and supervision thereof; (h) for the regulation of the tim~ and mode of collecting the tax under thi~ Act, and (i) in general, for carrymg out the purposes of th,s Act. (2) In makm~ a bye-Jaw, the local authority may provide, that a breach thereof shall be puntshable v-. ith fine wh1ch may extend to fifty rupees and m case of a contmuing b:each with fine wluch may extend to fifleen rupees for every day du11ng which the breach continues after convict10n for the fint breach. (3) All such bye-laws shall have effect when they have been approved by the Director of Local Bodie:. or such othe1 officer not below the rank of a Deputy Dtrcctor of Local Bodies as may be autho­ riSf'd by him m that behalfand published m the Gazette, provided that in the case of the bye-laws made by a Municipal CorpOiation, the approval ~hall be that ofthe Government. 13. &peal and Savmgs -The Travancorc-Cochm 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 1 eferred to m ~u b-,ection (2) of sect1on 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 1t is not mcons1~tent with the piOvistons of this Act, contmue in force and be deemed to have been made or issued under the pt ovisions of this Act, unless .md until it is superseded by any notification, order, rule or bye-law made or issued under this Act.