Discos, pubs to pay entertainment tax
From this month, majority of the city pubs, discos and permit rooms will have to shell out an entertainment tax to the state government.mumbai Updated: Aug 07, 2010 02:07 IST
From this month, majority of the city pubs, discos and permit rooms will have to shell out an entertainment tax to the state government.
Your weekend fix at your favourite watering hole in the city may get dearer, as the pubs and discos are likely to pass the entertainment levy to their patrons. The state has amended the Mumbai Entertainment Tax Act, 1923, to get all pubs, discotheques and permit rooms playing live orchestra under the tax bracket.
The ordinance was issued on Monday after clearance from the governor and will be applicable from this month. The ordinance also makes way for entertainment levy on Internet Protocol Television (IPTV) on par with Direct to Home telecast and levy tax of around 20 per cent on this. So if you have opted for this new service, you may have to pay more than your monthly outgo of Rs 300 a month.
Since even disc jockey performance has been termed as taxable, most pubs and discos will get covered under this tax.
Pubs and discotheques at five star hotels within the city limits will have to pay entertainment tax of Rs 2 lakh per month. Standalone clubs, pubs in Mumbai will have to cough up Rs 1 lakh per month as part of the new levy. The tax slab for permit rooms playing live orchestra is Rs 50,000 within the city limits and Rs 25,000 outside.
Pubs in five-star hotels outside Mumbai will have to pay Rs 1 lakh. The tax is Rs 50,000 for pubs outside Mumbai. Only those playing classical music will be exempted from this tax. The tax is expected to add Rs 15 crore annually to the state kitty.