15 July 2011
An Entertainment company is planning to organise a one day night concert in siliguri in which the entertainers will be filmstars and singers from bollywood and Kolkata. Is entertainment tax applicable on such concerts. If yes, then what is the legal procedure to lower tax burden?
Keep in mind that not only entertainment tax but service tax is also applicable in this case.
First of all you have to show the cause for which your company is organising the show. If it is for some nobale cause then file an application to the authority for waiver of entertainment tax. This is possible but service tax is not possible for waiver.
If the total turnover of the company is below 10 lacs then no Service tax is applicable. In case of entertainment it is not possible to have turnover below 10 lacs as you are inviting singers from Bollywood and Kolkota. So, if you have not thought of then be prepared if the officials of Service Tax sends you a notice then it is payable.