Service tax and entertainment tax on entertainment event

Knowledge resource 417 views 1 replies

Hello! A company is planning to organize an entertainment event in Mumbai. And as per new service tax negative list. Service tax on entry to entertainment event will be charged. So Basically if Ticket is of Rs 1000. He has to charge Service Tax and Entertainment Tax both on Rs 1000? 

 

Replies (1)

Raising same issue here; 

How can the same  service/goods be taxed by both State and Central Govts.? 

It is unconstitutional.

The fiscal principle underlying article 246 of the constitution of India separates the sources of taxation for the Union and the States and also maintains the exclusivity. This article also provides that in case of conflict between the powers of Union and the States, the Union power to tax shall supersede the power of the State to levy tax on the taxable event or in relation to the subject or object of taxation.

As per the above, only service tax should be applicable for tickets for such events priced at over Rs.500.

Look forward to comments from CAs.


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