Entertainment Tax Rate

Its 45%

The State Government of Maharashtra levies Entertainment duty on sale of movies tickets under the Bombay Entertainments Duty Act, 1923 (÷Entertainment Act÷). As per the said Entertainment Act, Entertainment Tax is payable at the rate of 45% on payment for admission by the proprietors for multiplex theatres constituted within the limits of the Brihan Mumbai Municipal Corporation. Therefore, in ordinary course, ADLABS were liable to pay Entertainment Tax @ 45% on ticket price. However, with a view to encourage growth of the multi purpose cinema theatres complexes in the State, the State Government vide Government resolution dated 4.01.2003 granted exemption from the entire Entertainment Tax for period of first 3 initial years from the date of commencement of the complex, and to the extend of 75 % for the fourth and fifth years. The multiplex were required to pay full Entertainment Tax from the sixth year onward.