The KARNATAKA ENTERTAINMENTS TAX ACT, 1958

 Entertainments Tax    [1958: KAR. ACT 30 738 
THE KARNATAKA ENTERTAINMENTS TAX ACT, 1958 
ARRANGEMENT OF SECTIONS 
Statement of Objects and Reasons: 
Sections : 
 1. Short title, extent and commencement.  
 2. Definitions. 
 2A. Instructions to subordinate Authorities. 
 2B. Power to issue directions regarding jurisdiction. 
 3. Tax on payment for admission to entertainments. 
 3A. Additional Tax on Admission 
 3B. Omitted. 
 3C. Special provision in respect of certain films 
 4. Additional Tax on cinematograph shows. 
 4A. Tax on cinematograph shows in certain places. 
 4AA. Collection of Service Charges 
 4B. Special provision in respect of video shows. 
 4C. Special provision in respect of certain entertainments. 
 4D. Composition of tax payable under section 4C.  
 4E. Taxan amusement. 
 4F. Tax on recreation parlours. 
 4G. Tax on multi System operator. 
 5. Admission of entertainments. 
 6. Manner of payment of tax. 
 6A. Submission of returns and furnishing of information. 
 6B. Payment for admission, etc., escaping assessment. 
 6C. Rectification of mistakes. 
 6D. Issuance of Clearance Certificate to proprietors 
     6E.  Registration of Certain Proprietors 
 7. Exemptions. 
 7A. Power of State Government to exempt or reduce Tax. 
 8. Refunds in certain cases. 
 8A. Rounding off of tax etc. 
 8B. Appeals. 
1958: KAR. ACT 30] Entertainments Tax  739 
 8C. Revisional Powers of Deputy Commissioners. 
    8-CC. Revision by the Additional Commissioner 
 8D. Revision by the Commissioner. 
 8E. Appeal to the Appellate Tribunal. 
 8F. Revision by High Court in certain cases 
 9. Payment and recovery of tax. 
 9A. Forfeiture of illegal or excess collection of tax. 
 9AA. Recovery of tax or penalty or any other amount from certain other persons. 
9AAA.   Furnishing of return, etc. 
 9AB. Purchase by the State Government in auction of property. 
 9B. Liability of firms. 
 9C. Liability on transfer of business. 
 9D. Assessment of Legal representatives. 
 10. Inspection. 
 10-A. Registration of distributors, etc. 
 11. Admission of certain officers without payment. 
 12. Penalties. 
 12A. Summary disposal of certain cases. 
 13. Composition of offences. 
 14. Bar of certain proceeding. 
 15. Limitation for certain suits and prosecutions. 
 16. Delegation of certain powers of the State Government. 
 17. Omitted. 
 18. Power to make rules. 
 19. Repeal and savings. 
20. Power to remove difficulties. 
21. NOTIFICATIONS 
* * * * 
STATEMENT OF OBJECTS AND REASONS 
I 
 Act 30 of 1958.- At present, there are different laws for t he levy and collection of 
entertainment tax in the integrated areas of the State. It is proposed to have a 
uniform law on the subject for the entire State. 
 Entertainments Tax    [1958: KAR. ACT 30 740 
 2. In the Hyderabad, Madras and Mysore areas of the State, there is a cinema 
show tax in addition t o entertainment tax. It has been considered desirable to have 
a uniform law on this subject applicable to the entire new State. 
 3. The draft Bill provides for the levy and collection of entertainments tax and 
for the payment of 90 per cent of the proceeds  to the local authorities in whose 
jurisdiction the entertainments are held. It also provides for the collection of a 
cinema show tax at rates varying from Re.1 to Rs. 3 for each cinema show. The 
entire proceeds of the cinema show tax will be credited to Government. 
 (Obtained from Notification No. 1604 -  L.A., dated 3.5.1958. Published in the 
Karnataka Gazette (Extraordinary) Part IV-2A as No. 98.) 
II 
 Amending Act 14 of 1966.—At present, tax is being levied on all entertainments 
except those which are specially exempted under section 7 of the Mysore 
Entertainments Tax Act, 1958. A surcharge on the entertainments tax is also levied 
under the Mysore Entertainments Tax (Surcharge) Act, 1962. In order to give 
encouragement to entertainments such as exhibitions , magic shows, dances, etc., it 
is proposed to abolish the levy of tax in such entertainments, and to levy 
entertainments tax only on horse races and cinematograph shows. It is also 
proposed to repeal the Mysore Entertainments Tax (Surcharge) Act, 1962 and to 
incorporate the provisions made therein with in increase of twenty -five per cent of 
the rate in the Mysore Entertainments Tax Act itself. 
As regards the additional tax on cinematograph shows show levied under 
section 4 of the Act, it is proposed to lev y a higher rate of tax per show. Further in 
the City of Bangalore, in the case of Class I Theatres, i. e., theatres in which the 
rate for admission to the highest class is not less than two and a half rupees, it is 
proposed to levy the tax at ten rupees per show. Hence this Bill. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 26th 
March 1966, as No. 56, p. 11.) 
III 
Amending Act 31 of 1969. — While considering methods by which delays in the 
disposal of cases can be reduced and the time of the courts can be saved in trying 
a large volume of petty cases, the Law Commission of India in their fourteenth 
Report recommended the adoption of the procedure laid down in section 130 of the 
Motor Vehicles Act, 1939. Section 130 of the Motor Vehicles Act, 1939 provides for 
the summary disposal of cases arising under that Act in respect of specific class of 
offences thereunder. In accordance with that section, the accused person can plead 
1958: KAR. ACT 30] Entertainments Tax  741 
guilty to the charge by registered letter and remit to the court as fine such sum as 
the court may specify. The Commission has recommended that this procedure may 
be extended to minor offences under other Acts. 
After examining the suggestion of the Law Commission of India, it has been 
decided to make a provision in the Mysore Sales Tax Act, 1957 (Mysore Act 25 of 
1957) and the Mysore Entertainments Tax Act, 1958 (Mysore Act 30 of 1958) 
similar to section 130 of the Motor Vehicles Act, 1939 to deal with the offences 
prescribed under section 29 (1) of the Mysore Sales Tax Act, 1957 and section 12 
(1) (b) (ii) of the Mysore Entertainments Tax Act, 1958. Hence this Bill. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 4– 5th 
February 1969, as No. 8579, p. 80.) 
IV 
Amending Act 14 of 1971. —In order to raise additional resources to be utilised 
exclusively for the relief of Bangla Desh refugees, the Government of Mysore has 
proposed to levy an additional surcharge of ten per cent, raising the existing 
surcharge of fifty per cent to sixty per cent of the basic entertainments tax on every 
payment for admission to an entertainment. The present measure is being enacted 
to give effect to the said proposal. 
2. The Committee constituted under the proviso to subsection (2) of Section 3 of 
the Mysore State Legislature ( Delegation of Powers) Act, 1971 (23 of 1971), has 
been consulted before enactment of this measure as a President’s Act. 
(Obtained from Presidents Act 14 of 1971.) 
V 
Amending Act 4 of 1973. —  President’s Act 14 of 1971, 16 of 1971, 17 of 1971 
and 18 of 1971 had been enacted to raise additional resources for the relief of 
Bangla Desh Refugees.  They expire on 24th March 1973. 
 It is proposed that while the additional levies for the relief of Bangla Desh 
Refugees may cease, the levies may be retained till 31st  March 1974 to raise 
additional resources to meet the cost of ‘People’s Housing Programme’ to be 
undertaken by the State Government. 
 Hence this Bill. 
 (Obtained from L.A. Bill No.16 of 1973) 
 
VI 
 Entertainments Tax    [1958: KAR. ACT 30 742 
Amending Act 15 of 1974.— It is proposed to raise the rates of “Surcharge” and 
“Show Tax” in order to augment the revenues of the State. 
 Hence this Bill. 
 (Obtained from L.A. Bill No.14 of 1974) 
 
 
VII 
Amending Act 36 of 1976. — With a view to augment the revenues of the State, 
it is proposed to levy an Additional Tax on entertainments on the value of tickets 
(inclusive of Entertainment Tax and Surcharge). 
It is further proposed, in order to effectively check evasion to increase the fines 
leviable under the Act and to provide for imprisonment as an alternative penalty. 
It is also proposed for the same reason to amend the Karnataka Cinemas 
Regulation Act to enable revocation or suspension of the cinema licence even when 
offences under the Act are compounded. 
Incidental amendments providing for rounding off the tax to the nearest multiple 
of five paise, refund of tax in case of power failure or mechanical breakdown etc., 
are also proposed to be made. 
Hence this Bill. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 30th 
March 1976, as No. 1744, p. 8.) 
VIII 
Amending Act 16 of 1977. — At present, entertainment tax is levied on each 
payment for admission to an entertainment. In addition, surcharge and additional 
tax are levied on the same basis. An additional tax on cinematograph shows is also 
levied at prescribed rates per show. In view of the increasing number of complaints 
about the large scale evasion of entertainment tax especially by the  proprietors of 
Cinema theatres in mofussil places, and in order to check such evasion, it is 
proposed to introduce a revised scheme of levy of entertainment tax in lumpsum on 
the basis of shows held in cinema theatres situated in places having less than 
10,000 population. The proposed rate of tax per show is 12 per cent of the ‘Gross 
Collection Capacity’ (GCC), which is a notional sum representing the payments for 
admission to a show if all aggregate of all the seats in the cinema theatre are 
occupied. 
1958: KAR. ACT 30] Entertainments Tax  743 
Opportunity is also taken to make some minor amendments to overcome 
difficulties experienced in implementing the Act. 
Hence the Bill. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 1st April 
1977, as No, 259, p. 6.) 
 
 
IX 
Amending Act 3 of 1979. —Section 9 (3) (b) of the Karnataka Entertainments 
Tax Act, 1958 prescribes that arrears of sums due under the Act may be recovered 
inter alia, by a Magistrate on application to him, as if they were a fine imposed by 
him. 
In the case reported in 28 STC at page 492, the High Court of Karnataka has 
held that the Magistrate is incompetent to recover sums which are in excess of his 
pecuniary jurisdiction specified in the Code of Criminal Procedure. 
To overcome the effect of the said decision of the High Court it is considered 
necessary to amend Section 9 (3) (b) to make it clear that a Magistrate can recover 
any amount of tax or amount due, notwithstanding anything contained in the Code 
of Criminal Procedure. 
Hence the Bill. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 9th 
August 1978, as No. 1127. p. 3. 
X 
Amending Act 21 of 1979. — In order to augment the revenues of the State it is 
proposed to second taxation and other laws. Opportunity is taken to make some 
other amendments also. 
 Hence this Bill. 
 (Published in the Karnataka Gazette (Extraordinary) Part IV -2A dated 27 -3-
1979 as No. 259). 
XI 
Amending Act 25 of 1979. —In order to augment the revenues of the State, the 
Karnataka Taxation and Certain Other Laws (Amendment) Ac t, 1979, has been 
brought into force. 
According to the said Act, the tax has been increased by hundred per cent on 
Films which are granted ‘A’ certificate. Several representations have been received 
 Entertainments Tax    [1958: KAR. ACT 30 744 
to reduce the same. Government propose to retain the power to make a reduction in 
the tax payable on ‘A’ Certificate Films. 
It is also proposed to amend section 7 of the Karnataka Entertainments Tax Act, 
1958, so as to provide exemption for Children’s Film as it is an ‘International 
Children’s Year’. 
Hence this Bill. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 19th April 
1979, as No. 355, p. 5.) 
XII 
Amending Act 14 of 1980.—To augment the revenue of the State and to further 
rationalise the taxation structure, it is proposed to make certain amendments to the 
Karnataka Entertainments Tax Act, 1958, the Karnataka Forest Act, 1963 and the 
Karnataka Sales Tax Act, 1957. Hence the Bill. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 14th 
March 1980, as No. 192, p. 5.) 
XIII 
Amending Act 26 of 1980. —Under the provisions of the Karnataka 
Entertainments Tax Act 1958 (Karnataka Act 30 of 1958), the entertainments tax 
payable in respect of the films for which ‘A’ certificates are granted by the Board of 
Film Censors for restricted exhibition is twice the tax payable in other cases. 
It is now felt that the tax payable for such films should be the same as that 
normally paid for other films. 
The present Bill is intended to achieve this object. 
(Published in the Karnataka Gazette (Ex traordinary), Part IV -2A dated 18th July 
1980, as No. 567, p. 3.) 
XIV 
Amending Act 5 of 1981. —The present Bill is intended to give effect to the 
pronouncements made in the Budget Speech for the year 1981- 82. In view of the 
proposed general reduction in the rate of tax applicable to Kannada, Konkani and 
Telugu Films produced in the State and with a view to safe- guarding Government 
revenue, certain provisions of the Law relating to grant of exemptions from payment 
of tax. Films on the basis of their language,  theme or attitude value, etc., are now 
proposed to be modified. However grant of exemptions to Films receiving National 
or State Awards would be continued under the existing provisions of the Act. The 
provision in the existing Act relating rounding off of  tax liability is modified in the 
interest of State revenue. 
1958: KAR. ACT 30] Entertainments Tax  745 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 26th 
March 1981, as No.197, p. 4.) 
XV 
Amending Act 13 of 1982. —In the budget speech for the year 1982- 83, the 
Hon’ble Minister for Finance and Tourism, has indicated several proposal in order to 
augment the revenue of the State. This Bill seeks to give effect to the said 
proposals. Opportunity is taken to make some other minor amendments. 
(Published in the Karnataka Gazette (Ext raordinary), Part IV -2A dated 27th 
March 1982, as No. 228, p. 31.) 
XVI 
Amending Act 2 of 1983. —Under the scheme of compulsory composition in 
section 4A of the Karnataka Entertainments Tax Act, 1958 (Karnataka Act No. 30 of 
1958) as applicable to the cinematograph shows held in cinema theatres situated in 
local authorities with a population exceeding 15000 and less than 25000, as is 
payable either at 25 per cent of the gross collection capacity or at 20 per cent of the 
gross collection capacity on the maximu m number of shows per day. It is not 
permissible to pay the tax in respect of such theatres in accordance with sections 3 
and 3A of the Act. It was found that this scheme imposed very heavy tax burden on 
such theatres and some relief was necessary. It is t herefore proposed to amend 
section 4A and provide for a scheme of composition for such theatres under which 
option is given to the proprietors of such theatres to pay either entertainments tax 
and surcharge under sections 3 and 3A or entertainments tax at 20 per cent of the 
gross collection capacity on the maximum number of permitted shows. 
In order to remove difficulties in the determination of gross collection capacity of 
drive-in-theatres for levying entertainments tax it is proposed to remove such 
theatres from the scheme of composition under section 4A. 
The incentive by way of reduction of 50 per cent of the entertainments tax given 
to Kannada, Kodava, Konkani and Tulu language films is now confined only to such 
films produced in the State of Karnataka.  With a view to further encourage the 
development of films in the above regional languages it is now proposed to remove 
the said restriction by amending sections 3C and 4A. 
An Ordinance was promulgated to bring some of the provisions aforementioned 
immediately into force. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 26th 
November 1982, as No. 824, p. 56.) 
XVII 
 Entertainments Tax    [1958: KAR. ACT 30 746 
Amending Act 9 of 1983. — According to the existing provisions of the 
Karnataka Entertainments Tax Act, 1958, levy of tax is r estricted only to the two 
types of entertainments namely cinematograph shows and horse races. In the 
Budget speech for the year 1983- 84, it has been indicated that the levy of 
entertainments tax shall be extended to certain selected games as well, but at 
concessional rates. The Bill seeks to implement these pronouncements in the 
Budget speech. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 29th 
March 1983, as No. 204, p. 53.) 
XVIII 
Amending Act 9 of 1984. —In the Budget Speech for the year 1984- 85, The 
Hon’ble Chief Minister has proposed to withdraw the levy of Entertainments Tax on 
sports and also to provide for the passing of benefit of exemption or reduction of 
entertainments tax to the cinegoers in respect of theatres which are covered by 
composition scheme. 
The Karnataka Taxation Review Committee had recommended prescribing a 
minimum penalty for evasion of taxes. 
Hence the Bill. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 22nd 
March 1984, as No. 180, p. 50.) 
XIX 
Amending Act 3 of 1985. —The proposed legislation is for the purpose of 
making amendments to certain definitions under the Act with a view to making the 
levy of tax effective; for liberalising exemptions in favour of award winning films, 
educational films and children films. The proposed legislation also seeks to extend 
the composition Scheme to places upto a population of one lakh and also to extend 
the scheme to entertainment through video shows. It is also proposed to rationalise 
and streamline the existing provisions. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 22nd 
September 1983, as No. 836, p. 59.) 
XX 
Amending Act 22 of 1985. —Consequent upon the presentation of the budget 
for the year 1985- 86 the following amendments to the Karnataka Entertainments 
Tax Act, 1958 become necessary. 
Clause 2 provides for amendment of section 3C to limit the concession now 
given to films produced in the regional languages outside the State for a period or 
1958: KAR. ACT 30] Entertainments Tax  747 
one year from 1- 1-1986 and continue s uch concession to such films produced 
within the State. 
Clause 3 is to prohibit the proprietors of cinema theatres from collecting show tax 
from the persons admitted to the cinema. 
Clause 4(3) is to plug the evasion of tax by the proprietors of cinema thea tres 
paying tax under section 4A. 
In respect of Video Shows, the tax is increased from Rs. 100 per month to Rs. 
1,000 per month. 
Hence the Bill. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 1st 
August 1985, as No. 416, p. 47.) 
XXI 
Amending Act 3 of 1987.— According to clause (b) of sub-section (1) of section 
3C of the Karnataka Entertainment Tax Act, 1958 in the case of a cinematograph 
show of a Kannada, Kodava, Konkani or Tulu film produced outside the State of 
Karnataka the rates of entertainment tax payable shall be one half of the rates 
specified therein for a period of six months from the date of first release of such film 
in the State of Karnataka, but not beyond 31st December 1986. It is proposed to 
extend the date from 31st December 1986 to 31st December 1987. 
Hence the Bill. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 4th 
February 1987, as No. 98, p. 67.) 
XXII 
Amending Act 15 of 1987. —To give effect to the proposals made in the budget 
speech it is pr oposed to amend the Karnataka Entertainments Tax Act, 1958. 
Opportunity is taken to make a consequent amendment to section 4A also. 
Hence the Bill. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 27th 
March 1987, as No. 244, p. 77.) 
XXIII 
Amending Act 17 of 1987. —To give effect to the announcement made by the 
Hon’ble Chief Minister on the floor of the Assembly on 27th March 1987, it is 
proposed to increase the rate of show tax in lieu of exemption of tax on leasing of 
feature films under Karnataka Sales Tax Act, 1957. 
Hence the Bill. 
 Entertainments Tax    [1958: KAR. ACT 30 748 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 3rd April 
1987, as No. 285, p. 65.) 
XXIV 
Amending Act 31 of 1987. —The definition of “local authority” appearing in 
clause (g) of section  2 of the Karnataka Entertainments Tax Act, 1958 includes a 
town panchayat or a village panchayat. After coming into force of the Karnataka 
Zilla Parishads, Taluk Panchayat Samithis, Mandal Panchayats and Nyaya 
Panchayats Act, 1983, the town panchayats and village panchayats are no more in 
existence and in their place Mandal Panchayats are constituted. Therefore, it is 
necessary to amend clause ( g) to substitute the expression “Mandal Panchayat” in 
place of “town panchayats or Village panchayat”. 
Hence the Bill. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 2nd 
September 1987, as No. 573, p. 69.) 
XXV 
Amending Act 2 of 1988. — With a view to give some relief to the exhibitors of 
Kannada films from the enhancement of Show Tax, it is proposed to amend the 
Karnataka Entertainments Tax Act, 1958. 
As the matter was urgent and the Karnataka Legislative Council was not in 
Session, the Karnataka Entertainments Tax (Amendment) Ordinance, 1987 
(Kannada Ordinance 7 of 1987) was promulgated. 
This Bill seeks to replace the said Ordinance. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 23rd 
January 1988, as No. 54, p. 62.) 
XXVI 
Amending Act 17 of 1988. — While a film in Kannada, Kodava, Konkani or Tulu 
language has to secure a “best  feature film award” for exemption from payment of 
entertainments tax, a film in any other language has to secure only “an award” for 
exemption from payment of Entertainments Tax. It is proposed to set right the 
anomaly in the condition necessary for grant  of exemption from payment of 
entertainments tax by requiring films in other languages also to secure “a best 
feature film award” for grant of exemption from payment of Entertainments Tax. 
With a view to provide some relief to films other than Kannada, Kod ava, Konkani 
or Tulu languages, it is proposed to reduce the show tax. 
Hence the Bill. 
1958: KAR. ACT 30] Entertainments Tax  749 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 2nd April 
1988, as No. 201, p. 3.) 
XXVII 
Amending Act 20 of 1989. —It is proposed to amend the Karnataka 
Entertainments Tax Act, 1958 (Karnataka Act 30 of 1958),—  
(i) to empower the State Government or the Commissioner to issue orders, 
instructions and directions to the subordinate officers for the effective 
implementation of the provisions of the Act; and 
(ii) to empower the Commissioner to transfer the powers conferred on an 
entertainments Tax Officer in respect of any specified place of Entertainments to 
any other Entertainments Tax Officer. 
Hence the Bill. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 27th 
March 1989, as No. 167, p. 74.) 
XXVIII 
Amending Act 7 of 1990. —To give effect to the proposals made in the Budget 
Speech, it is considered necessary to amend the Karnataka Entertainments Tax 
Act, 1958. 
Opportunity is also taken to rationalise certain provisions of the said Act. 
Hence the Bill. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 29th 
March 1990, as No. 162, p. 71.) 
XXIX 
Amending Act 6 of 1992. —After examining the representation made by the 
Karnataka Film Chamber of Commerce, it was considered necessary to extend 50% 
concession in Entertainment Tax to all Kannada, Kodava, Konkani or Tulu films 
censored before 31- 12-1987, irrespective of whether the film has been produced 
within Karnataka or outsi de, and without any time limit. Accordingly, the Karnataka 
Entertainment Tax (Amendment) Ordinance, 1991 (Karnataka Ordinance No. 12 of 
1991) was promulgated. 
This Bill seeks to replace the said Ordinance. 
Opportunity is also taken to amend Section 17 to provide for payment of 
compensation to the local authorities out of the proceeds of the surcharge collected 
during any year. 
Hence the Bill. 
 Entertainments Tax    [1958: KAR. ACT 30 750 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 30th 
March 1992, as No. 199, p. 51.) 
 
 
 
XXX 
Amending Act 5 of 1993. —Consequent to the re- designation of posts in the 
Commercial Tax Department, it has become necessary to make suitable 
amendments in the relevant Taxation Laws. 
The full bench of our High Court in Shah Wallace case while overruling a 
Division Bench judgement of our High Court in Janardhanacharya’s case had held 
that the notifications issued under section 8A of the Karnataka Sales Tax Act, 1957 
become inoperative when the relevant provisions of the Act are subsequently 
amended by way of i nsertion of any entry relating to the class of goods to which 
exemptions were given by the notifications. Therefore, it was considered necessary 
to suitably amend the said Act, to save the notifications already issued. 
As the matter was urgent and both the  Houses were not in session, the 
amendments were carried -out by promulgation of the Karnataka Taxation Laws 
(Amendment) Ordinance, 1992. 
This Bill seeks to replace the above Ordinance. Hence the Bill. 
(Obtained from L.A. Bill No. 29 of 1992.) 
XXXI 
Amending Act 11 of 1993. — (As appended to at the time of introduction of the 
Bill) 
It is considered necessary to amend the Karnataka Tax on Luxuries (Hotels and 
Lodging Houses) Act, 1979, the karnataka Tax on Professions, Traders, Callings 
and Employments Act, 197 6, the Karnataka Entertainments Tax Act, 1958 and the 
Karnataka Sales Tax Act, 1957 to give effect to the proposals made in the budget 
speech and matters connected therewith. 
Hence the Bill. 
(Obtained from L.A. Bill No. 15 of 1993) 
XXXII 
Amending Act 18 of 1994.—It is considered necessary to amend the Karnataka 
Sales Tax Act, 1957, the Karnataka Tax on Professions, Trades, Callings and 
Employments Act, 1976, the Karnataka Tax on Entry or Goods Act, 1979, the 
1958: KAR. ACT 30] Entertainments Tax  751 
Karnataka Entertainments Tax Act, 1958, the Mysor e Betting Tax Act, 1932 and the 
Karnataka Agricultural Income Tax Act, 1957 to give effect to the proposals made in 
the Budget speech and matters connected therewith. 
Hence the Bill. 
(Obtained from L.A. Bill No. 12 of 1994.) 
XXXIII 
Amending Act 25 of 1994.—It is considered necessary to amend the Karnataka 
Entertainments Tax Act, 1958 to give effect to the report of the Committee 
Constituted under the Chairmanship of Sri V. N. Subba Rao to suggest 
comprehensive policy for Karnataka Film Industry. 
The Bill among other things provides for : 
 (i) levy of tax on cinematograph shows other than vedio shows on the basis of 
gross collection capacity per show in respect of entertainment held in cinema 
theatres situated within the limits of a local authority or town or  village having 
a population above 15,000; 
 (ii) levy of entertainment tax at one- half of the rate in respect of a Kannada film 
remade form a film of any other language after a period of ten years from the 
date of issue of certificate by the Central Board of Film Certification to such 
other Language Film; 
 (iii) levy of entertainment tax at one- half of the rate in respect of a Kannada film 
remade from a film of any other language which has secured a best feature 
film award by the Central Government or any S tate Government or has 
figured in the Ponorama Section of International Film Festival; 
 (iv) payment of -a lumsum tax in lieu of tax under section 3B in respect of 
cinematograph shows other than vedio shows on the basis of gross 
collection capacity per show  (irrespective of actual shows held or not) in 
cinema theatres situated within the limits of local authority or town or village 
having a population above fifteen thousand; 
 (v) exemption of entertainment tax for a period one year to be specified by the 
Government in respect of cinematograph show of a Kannada, Konkani, 
Kodava or Tulu film which has secured a best feature film award granted by 
the Central Government or any State Government or any internationally 
recognized award; 
 (vi) exemption of entertainm ent tax for a period of six months to be specified by 
the Government in the case of cinematograph show of a film other than 
Kannada, Konkani, Kodava or Tulu film which has secured a best feature 
 Entertainments Tax    [1958: KAR. ACT 30 752 
film award granted by the Central Government or any State Gov ernment or 
any internationally recognised award; 
 (vii) levy of tax at one- half of the rates in the case cinematograph show of 
Kannada, Konkani, Kodava or Tulu film produced in the State of Karnataka;  
 (viii) levy of tax at one- half of the rates in the cas e cinematograph show of a 
Kannada, Konkani, Kodava or Tulu film produced outside the State of 
Karnataka and which has secured a censor certificate issued by the Central 
Board of Film Certification on or before 31st December 1987. 
Certain consequential changes also have been made. 
Hence the Bill. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 29th 
August 1994, as No. 714, p. 31.) 
 
XXXIV 
Amending Act 6 of 1995. —It is considered necessary to amend the Karnataka 
Sales Tax Act, 1957, the K arnataka Agricultural Income Tax Act, 1957, the 
Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the 
Karnataka Entertainment Tax Act, 1958, the Karnataka Tax on Entry of Goods Act, 
1979, Karnataka Tax on Luxuries, (Hotels and Lodgi ng House) Act, 1979, the 
Mysore Betting Tax Act, 1932 and to give effect to the proposals made in the 
Budget speech and matters connected therewith. 
Hence the Bill. 
(Obtained from L.A. Bill No. 4 of 1995..) 
 
XXXV 
Amending Act 5 of 1996. —It is considered necessary to amend the Karnataka 
Tax on Luxuries (Hotels and Lodging Houses) Act, 1979, the Karnataka Tax on 
Professions, Trades, Callings and Employments Act, 1976, the Karnataka 
Entertainments Tax Act, 1958, the Karnataka Agricultural Income Tax Act, 1957,  
and the Karnataka Sales Tax Act, 1957 to give effect to the proposals made in the 
Budget speech and matters connected therewith. 
(Obtained from L.A. Bill No. 12 of 1996.) 
XXXVI 
Amending Act 15 of 1996.—It is considered necessary to make amendments to 
the following enactments. 
1958: KAR. ACT 30] Entertainments Tax  753 
1. It is proposed to amend sub- section (7) of section 5 of the Karnataka Tax on 
Entry of Goods Act, 1979 to empower the Joint Commissioner instead of the 
Commissioner to defer the assessment. 
2. Consequent to the amendment of section 3 of the Karnataka Tax on Luxuries 
(Hotels and Lodging Houses) Act, 1979, clause (5) of Section 2 thereof is proposed 
to be amended. 
3. It is proposed to insert a new Section 7A in the Karnataka Entertainments Tax 
Act, 1958 to empower the State Government to notify exemption or reduction of tax 
in respect of entertainments held in newly constructed cinema theatres situated 
within the limits of any specified local authority or class of local authority. 
4. In the Karnataka Sales Tax Act, 1957, it is proposed to amend:—  
 (i) sub-section (1) of section 3B to empower the Commissioner instead of the 
State Government to specify the functions of the Additional Commissioners.  
 (ii) Explanation to sub-section (1C) of Section 5, to re-define the term silk fabrics 
with a view to include only such silk fabrics in which proportion of silk is 60% 
or more by weight of total fibre content so that small time weavers who 
weave the silk sarees of inferior quality with less than 60% silk content and 
sell to the customers, will get tax relief. 
 (iii) proviso to sub- section (2) of section 6A, to empower the Commissioner to 
notify any other goods in addition to the goods referred to in the proviso. 
 (iv) sub-section (3) of section 28- A, to empower the officer intercepting any 
goods vehicle at any place other than a check post or barrier to direct the 
person incharge or owner of such goods vehicle to take it to the nearest 
check post or Police Station for the purpose of examining contents in the 
vehicle; 
 (v) sub-section (4) of section 28-A to provide for levy of minimum penalty  
and to enhance the upper limit of the penalty. 
 (vi) sub-section (6) of section 28- A, to empower the officer levying penalty to 
retain the goods vehicle in case of a tanker carrying goods in liquid or 
gaseous f orm or to retain the whole goods if it is a single unit and not 
separable into any part; and to provide for furnishing Bank guarantee in 
respect of the penalty leviable under the Act. 
 (vii) serial number 3-A of Second Schedule to reduce the tax from 12 per cent to 
4 per cent in respect of agricultural implements like cultivators, discploughs 
etc., 
5. Certain consequential amendments are also made. 
 Entertainments Tax    [1958: KAR. ACT 30 754 
(Obtained from L.A. Bill No. 23 of 1996.) 
 
XXXVII 
Amending Act 7 of 1997. —It is considered necessary to amend the Karnataka 
Tax on Luxuries (Hotels, Lodging Houses and Marriage Halls) Act, 1979 (Karnataka 
Act 22 of 1979), the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act 27 
of 1979), the Karnataka Tax on Professions, Trades, Callings and Employments 
Act, 1976 (Karnataka Act 35 of 1976), the Karnataka Excise act 1966 (Karnataka 
Act 21 of 1966), the Karnataka Entertainments Tax Act, 1958 (Karnataka Act 30 of 
1958), the Karnataka Agricultural Income Tax Act, 1957 (Karnataka Act 22 of 1957), 
the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Mysore Betting 
Tax Act 1932 (Mysore Act IX of 1932), and to give effect to the proposals made in 
the Budget Speech and matters connected therewith. Certain consequential 
amendments are also made. 
Hence, the Bill. 
(Obtained from L.A. Bill No. 12 of 1997.) 
XXXVIII 
Amending Act 18 of 1997.—It is considered necessary to amend the Karnataka 
Sales Tax Act, 1957 to reflect the clear intention of the Budget speech for the year 
1997-98. 
After considering the representation made by the Karnataka Film Chamber of 
Commerce, it was considered necessary to amend the Karnataka Entertainments 
Tax Act, 1958 to provide for, 
 (i) reduction of rate of entertainment tax, and 
 (ii) abolition of surcharge consequent to re- introduction of ticket sealing system 
with effect from 1.4.97; 
In view of the decision of the Hon’ble High Court of Karnataka in W. P. No. 
2397/1988 and other connected matters, it has become necessary to amend the 
Karnataka Agricultural Income Tax, 1957 retrospectively with effect from 1.4.1975 to 
facilitate assessment of income received after dissolution of a firm even though at 
the time of such assessment the firm stood dissolved. 
Hence, the Bill. 
(Obtained from L.A. Bill No. 35 of 1997.) 
1958: KAR. ACT 30] Entertainments Tax  755 
XXXIX 
Amending Act 3 of 1998.- It is considered necessary to amend the Karnataka 
Taxation Laws Amendment Act, 1997 (Karnataka Act 7 of 1997), the Karnataka Tax 
on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979), the Karnataka Tax on 
Luxuries (Hotels, Lodging Houses and Marriage Halls) Act, 1979 (Karnataka Act 22 
of 1979), the Karnataka Tax on Professions, Trades, Callings and Employments 
Act, 1976 (Karnataka Act 35 of 1976), the Karnataka Entertainments Tax Act, 1958 
(Karnataka Act 30 of 1958) ,the Karnataka Excise act 1966 (K arnataka Act 21 of 
1966), the Mysore Betting Tax Act 1932 (Mysore Act IX of 1932), the Karnataka 
Sales Tax Act, 1957 (Karnataka Act 25 of 1957) and to give effect to the proposals 
made in the Budget Speech and matters connected therewith. Certain 
consequential amendments are also made. 
Hence, the Bill. 
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 26th 
March 1988, as No. 349, p. 32 and L.A. Bill No. 6 of 1998.) 
XL 
Amending Act 20 of 1998. - It is considered necessary to amend the Karnataka 
Sales Tax Act, 1957 (Karnataka Act 25 of 1957 and the Karnataka Entertainment 
Tax Act, 1958 (Karnataka Act 32 of 1958) to provide for exemption for certain State 
public undertakings engaged in manufacturing activities from deduction Tax under 
section 19AA, to authorise the Joint Commissioner of the Commercial Taxes to 
permit prosecution under section 29(2), to increase the composition amount to be 
on par with the other penalties under the Karnataka Sales Tax Act, 1957 (Karnataka 
Act 25 of 1957), and t o provide relief to cinema theatres in respect of Show Tax 
under the Karnataka Entertainment Tax Act, 1958 (Karnataka Act 32 of 1958).  
Hence the Bill. 
(Published in the Karnataka Gazette (Extraordinary) Part IV -2A, dated 15th May 
1998, as No. 601, p.5) 
XLI 
Amending Act 4 of 1999. - It is considered necessary to amend the Karnataka 
Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Karnataka Agricultural Income 
Tax Act, 1957 (Karnataka Act 22 of 1957), the Karnataka Tax on entry of goods Act 
1979 (Karnataka Act 27 of 1979) the Karnataka Tax on Luxuries (Hotel, Lodging 
Housed and Marriage Halls) Act, 1979 (Karnataka Act 22 of 1979) and the 
Karnataka Entertainment Tax Act, 1958 (Karnataka Act 30 of 1958) to give effect to 
 Entertainments Tax    [1958: KAR. ACT 30 756 
the proposals made in the Budget Speech and matters connected therewith. Certain 
consequential amendments are also made. 
 Hence, the Bill. 
 (Obtained from  L.A. Bill No. 6 of 1999.) 
 
XLII 
Amending Act 5 of 2000. -  It is considered necessary to am end the Mysore 
Betting Tax Act, 1932 (Mysore Act IX of 1932), the Karnataka Agricultural Income 
Tax Act, 1957 (Karnataka Act 22 of 1957), the Karnataka Tax on Luxuries Act, 1979 
(Karnataka Act 22 of 1979) and the Karnataka Entertainment Tax Act, 1958 
(Karnataka Act 30 of 1958) to give effect to the proposals made in the Budget 
Speech and matters connected therewith. Certain consequential amendments are 
also made. 
 Hence, the Bill. 
 (Obtained from L.A. Bill. No. 6 of 2000.) 
XLIII 
Amending Act 26 of 2000.- (As appended to at the time of introduction) 
In the Budget 200- 2001, the entertainment tax on non- Kannada films was 
enhanced from 70% to 100% with effect from 1.4.2000 and necessary amendments 
were made to the Karnataka Entertainment Tax Act, 1958. 
After the Tax was so enhanced, representations were received from some of the 
trade bodies including cinema talkies owners and peoples representatives that this 
increase was very steep and had caused lot of distress to the cine owners and cine 
goers and had adverse impact on the attendance in cinema halls and would 
severely impair the cinema trade including the upkeep of the cinema halls. 
Likewise, there were request for Banjara- specking peoples, who are also 
minorities in the State of karnataka to extend the benefi t of exemption from payment 
of entertainment tax in respect of Banjara film as it has been allowed to Kodava 
Konkani and tulu films. 
After examining the representations, the Government was convinced that cinema 
trade in Karnataka so far as it relates to non -Kannada film was severely affected on 
account of steep increase in the rate of entertainment tax with effect from 1.4.2000 
and therefore it was felt necessary to reduce the rate of tax to 80% by making 
suitable amendments to the Karnataka Entertainment T ax Act, 1958 to redress the 
1958: KAR. ACT 30] Entertainments Tax  757 
hardship caused to the cine owners and cine goers. It was also considered 
necessary to extend the benefit of exemption to Banjara film. 
Since the Matter was urgent and the Karnataka Legislative Council was nor in 
session, the Karnataka Entertainment Tax (Amendment) Ordinance, 2000 
(Karnataka Ordinance No. 6 of 2000) was promulgated to achieve the above object.  
Hence the Bill 
(Obtained from L.A. Bill No 28 of 2000). 
XLIV 
 Amending Act 5 of 2001. -     To give effect  to the  propos als made in the 
Budget Speech, it is considered necessary to amend the Karnataka  Sales Tax Act, 
1957 (Karnataka Act  
25 of  1957 the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act  27 of 
1979), the Karnataka Tax on luxuries Act, 1979 (Karnataka Act 22 of 1979), the 
Karnataka Entertainments Tax Act, 1958 (Karnataka Act 30 of 1958), the Karnataka 
Tax on Professions.  Trades, Callings and Employments Act, 1976 (Karnataka Act 
35 of 1976) and the Karnataka Agricultrural Income Tax Act, 1957 Karnataka Act 22 
of 1957).  Certain consequential amendments are also made. 
Hence the Bill 
(Obtained from L.A. Bill No 7 of 2001. DPAL 9 SHASANA 2001). 
XLV 
 Amending Act 5 of 2002. - It is considered necessary to amend the 
Karnataka Agriculture Income Tax.  1957, the Karnataka Sales Act, 1957, the 
Karnataka Taxes on Luxuries Act, 1979, the Karnataka Taxes on entry of Goods 
Act, 1979  and the karnataka Entertainment Tax Act, 1958 to give effect to the 
proposal made in the Budget Speech and matters connected therewith. 
 Certain consequential and incidential amendments are also made. 
 Hence the Bill 
 (Obtained from L.A. Bill No 12 of 2002. DPAL 18 SHASANA 2002). 
 
XLVI 
 Amending Act 7 of 2003.-  It To give effect to the proposals made in the 
Budget Speech, it is considered necessary to amend the Karnataka Agricultural 
Income Tax Act, 1957, the Karnataka Sales Tax Act, 1957, the Karnataka 
Entertainments Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings 
and Employment Act, 1976, the Karnataka Tax on Luxuries A ct, 1979, the 
 Entertainments Tax    [1958: KAR. ACT 30 758 
Karnataka Tax on Entry of Goods Act, 1979 and the Karnataka Electricity (Taxation 
on Consumption) Act, 1959. 
 Hence the Bill. 
 [L.A. Bill No. 9 of 2003] 
(Entries 46, 52, 53, 54, 60 and 62 of List -II of the Seventh Schedule to the 
Constitution of India) 
XLVII 
Amending Act 3 of 2004. - The Hon'ble High Court of Karnataka in 
S.T.R.P. numbers 46 to 57/2003 has held that tax cannot be levied on civil works 
like asphalting and repairing of roads under the existing provisions of the Karnataka 
Sales Tax Act, 1957. However, taxes have been levied and collected on such civil 
works from 1 st April 1986 relying on the existing entries. In view of the decision of 
the Hon'ble High Court, it is considered necessary to incorporate an enabling 
provision to levy s uch tax by amending the Karnataka Sales Tax Act, 1957 with 
retrospective effect. 
Similarly, the Hon'ble High Court of Karnataka in W. P. Nos. 8607-
8608/2003 has held that the tax cannot be levied on works contract of processing 
and supplying of photographs , photo prints and photo negatives under the existing 
provisions of the Karnataka Sales Tax Act, 1957. The Hon'ble High court has held 
that though the State Legislature has the power to levy tax on such works contracts, 
in view of the relevant entry having been struck down by the Hon'ble Supreme 
Court, in September 1999, tax cannot be levied and collected on such works 
contracts till the relevant entry is re- introduced in the Karnataka Sales Tax Act, 
1957. Taxes have been levied and collected on such works contracts from 1
st July 
1989. In view of the decision of the Hon'ble Supreme Court and the High Court, it is 
considered necessary to amend the Karnataka Sales Tax Act, 1957 with 
retrospective effect.  
It is also considered necessary that there should be a provision under the 
Karnataka Sales Tax Act, 1957 to constitute a Settlement Commission to reduce 
long pending disputes and recover tax arrears expeditiously. 
 The rate of sales tax being levied at present on Camphor is 5%. Whereas 
the Empowered Committee of State Finance Ministers has appealed to all the 
States / UTs to adopt the floor rates on all items. Hence, the rate of sales tax on 
Camphor is being increased to the floor rate of 8% by amending the Karnataka 
Sales Tax Act, 1957. 
It is also considered necessary to amend the Karnataka Tax on Luxuries 
Act, 1979, to give tax relief to clubs situated within areas outside municipal 
1958: KAR. ACT 30] Entertainments Tax  759 
corporations and to give tax relief to senior citizens and members of a youth club 
registered or recognised by the Department of Youth Services. 
It is also considered necessary to omit the provisions under the Karnataka 
Entertainments Tax Act, 1958 relating to collection of service charges by the owners 
of theatres. 
Hence the Bill. 
 [L.A. BILL No. 6 OF 2004] 
XLVIII 
Amending Act 26 o f 2004. - To give effect to the proposals made in the 
Budget Speech, it is considered necessary to amend the Mysore Betting Tax Act, 
1932(Mysore Act  IX of 1

Excerpt shown. Open the full act in Lexace.

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