XYZ is a housing society completing 25 years. They are celebrating this event by giving snacks for which coupons are given to members. Each family is given 2 coupons.
To defray the cost, sponsorship is accepted from various person. eg: cable man, etc.
1. Will this event come under the purview of entertainment tax?
2. Whether sponsorship amount received can be brought in books as a Balance Sheet item or P/L item.
1) As per my knowledge, entertainment tax is applicable only to Movie Theatres, Amusement Parks and Drama Theatres. Therefore, Co-operative Society shall be exempted from Entertainment Tax.
2) Yes. The Sponsorship Amount received during the year may be shown as Indirect Income in the Income & Expenditure A/c.
Regards,
Devendra Kulkarni
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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