The kerala Local Authorities Entertainments Tax Act, 1961

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ACT 20 OF 1961
THE KERALA LOCAL AUTHORITIES ENTERTAINMENTS
TAX ACT, 1961.
CONTENTS
Preamble.
Sections.
1 Short title, extent and commencement.
2 Definitions.
3 General provisions regarding the levy of the tax and the rale of 
tax.
4 Composition and consolidated payment of tax.
6 Admission of persons to entertainments subject to tax.
6 Manner of payment of tax.
7 Entertainment exempted from payment of tax.
8 Manner of recovery of tax and fines under the Act.
9 Inspection by Local Authority.
10 Penalty for non-payment of tax.
11 Power of the Government to make rules.
12 Power of Local Authority to make bye-laws.
13 Repeal and Savings.
ACT 20 OF 1961
THE KERALA LOCAL AUTHORITIES ENTERTAINMENTS
TAX ACT, 1961*
An Act to unify and amend the law relating to the imposition and collection
of taxes on amusements and other entertainments in the
State of Kerala. •
Preamble.—WHEREAS it  is  expedient  to  unify  and  amend  the  law
relating to the imposition and collection of taxes on amusements and other
entertainments m the State of Kerala;
BE it enacted in the Twelfth Year of the Republic of India as follows:
—
1. Short title extent and commencement.—(1) This Act may be called 
the Kerala Local Authorities Entertainments Tax Act, 1961.
(2) It extends to the whole of the State of Kerala.
(3) It shall come into force on such date as the Government may, 
by notification in the Gazette, appoint.
* Published in,the Gazette Extraordinary dated 3rd July 1961.

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2. Definitions —In this Act, unless the context otherwise requires—
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(1) ‘admission’ includes admission as a spectator or as one of an
audience and admission foi the purpose of amusement by taking part in an
entertainment;
(2) ‘admission to an entertainment’ includes admission to any place
in which the entertainment is held;
(3) ‘agriculture’includes  horticultuie  and  breeding  of  animals  of
every description;
(4) ‘entertainment’ includes  any  exhibition,  performance,  amuse-
ment, game, sport or race to which peisons are admitted for payment;
(5) ‘institution4 includes a company, society club or other asso ciation
of persons by whatever name called,
(6) ‘Local authority means—• '  I
(a) in any City, the Corporation of that City;
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^b) in any Municipal area, the Municipal Council concerned;
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(c) m any area within the jurisdiction of a Panchayat, the Pan- chayat 
concerned; ,, ,
(7) ‘payment for admission’ includes—
(a) any payment made by a person who, having been admitted to
one part of a place of entertainment, is subsequently admitted to another
part thereof, for admission to which a payment involving a tax or a higher
rate of tax is required;° '  s ’  ‘ • » I I c .  . .........................
(b) any payment for seats or other accommodation in a place of
entertainment; and
(c) any payment for any purpose, whatsoever connected with an
entertainment  which  a  person,  is  required  to  make  as  a  condition  of
attending  or  continuing  to  attend  the  entertainment  in  addition  to  the
payment, if any, for admission to the entertainment.
(8) ‘proprietor’ in relatroh to any entertainment includes any person
responsible for the management thereof. A I I
3. General provisions regarding the levy of the tax and the rate of tax.
—Any  local  authority  may  levy  a  tax  (hereinafter  referred>\to ^s vth<;
entertainments tax) at a rate not less than ten per cent and not more than
twenty five per cent on each payment for admission to any entertainment.
' ‘ " ' - - - , 4. Composition and consolidated payment jof
tax.—On the application of the proprietor of any entertainment m respect of
which the entertainments tax is payable under section 3, the local authority
may, subject to 1 such rules as may be made b> the Government in this
hphalf,.- compound the tax payable in respect of such entertainment for a
consolidated payment.
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5. Admission of persons to entertainments subject to tax. —(1) Save m
the cases referred to in section 4, no person shall be admitted for payment to
any  entertainment  where  the  payment  is  subject  to  entertainments  tax,
except—
(a) with a ticket stamped with an impressed, embossed, engraved or
adhesive stamp issued by the local authority indicating the proper tax for
such ticket; or
(b) in special cases, with the approval of the local authority, through a
barrier  which,  or  by  means  of  a  mechanical  contrivance  which,
automatically registers the number of persons admitted,
unless  the  proprietor  of  the  entei  tamment  has  made  arrangements
approved by the local authority for furnishing returns of the payments for
admission to the entertainment and has given security approved by the local
authority for the payment of the entertainments tax.
(2) Nothing contained in sub-section (1) shall be deemed to pre clude
the  local  authority  from  lequiring  security  from  the  pioprietor  of  an
entertainment foi the payment of the entertainments tax many other case.
6. Manner of payment of tax—^1) The entertainments tax shall be
levied in respect of each person admitted for payment, and in the case of
admission by ticket, shall be paid by means of a ticket referred to in clause
(a; of sub-section (1) of section 5, and in the case of admission otherwise
than by ticket, shall be calculated and paid on the number of admissions. '
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(2) The entertainments tax in the case of admission otherwise than by
ticket shall be recoverable from the proprietor.
(3) Where the payment for admission to an entertainment is made
wholly  or  partly  by  means  of  a  lump  sum  paid  as  a  subscription  or
contribution to any institution, or for a season ticket or for the tight of
admission to a series of entertainments or to any entertainment during a
certain period of time, the entertainments tax shall be paid on the amount of
the  lump  sum,  but  where  the  local  authority  is  of  the  opinion  that  the
payment of a lump sum or any payment for a ticket represents payment for
other  privileges,  rights  or  purposes  besides  the  admission  to  an
entertainment  or  covers  admission  to  an  entertainment  duungany  period
during which the tax has not been in operation, the tax shall be levied on
such  ambunt  as  appears  to  the  local  authority  to  represent  the  right  of
admission to entertainments in respect of which the entertain ments tax is
payable.
7.  Entertainment  exempted  from  payment  of  tax.—(1)  The
entertainments tax shall not be levied on payments for admission to any
entertainment where the local authonty is satisfied—
(a) that the entertainment «s of a wholly educational character ; or
(b) that the entertainment is provided for purposes which are wholly
or partly educational, cultural oi scientific by an institution not Conducted or
established for profit ; or
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(c) that  the  entertainment  is  provided  by  an  institution  not
conducted for piofit and established solely for the purposes of promoting
public health or the interests of agriculture or a manufacturing industry,
and which consists solely of an exhibition of articles which are of mateua!
interest  in  connection  with  questions  relating  to  public  health  or
agriculture, or of the products of the industry for promoting the intei ests
of which the institution exists or of the materials, machinery, appliances or
food stuffs used in the pioduction of those products ; or
(d) that  the  whole  or  the  net  proceeds  of  the  entertainment  is
devoted to philanthropic, religious or charitable purposes.
(2) Any dispute as to whether an entertainment is of the character
referred to in any of thec’.auces of sub-section (1) shall be leferred to the
District Collector, whose decision shall be fail.
(3) The Government may in consultation with the local authority
concerned,  by  Older,  exempt  any  particular  entertainment  or  class  of
entertainments from liability to the tax.  The local  authonty shall have
power  to  grant  exemption  in  any  other  case  subject  to  the  previous
sanction of the Government.
8. Manner  of  recovery  of  tax  and  fines  under  the  Act.—(1)  Any
amount due on account of the entertainments tax may be recovered by the
local  authority  in  the  same  manner  as  any  tax  payable  to  the  local
authority.
(2)  Any  fine  imposed  under  this  Act  or  rules  or  bve-laws  made
thereunder  shall  be  recovered in the  manner  provided in the  Code  of
Criminal Procedure 1898, for the lecovery of fines and shall on recovery
be paid to the local authority concerned to be applied for the general
purposes of such authority.
9. Inspection by Local Authority.  (1) Any officer authorised by the
local authority in this behalf may enter any place of entertainment while
the entertainment is proceeding and any place ordinarily used as a place of
entertainment at any reasonable time, with a view to seeing whether the
provisions of this Act or any iules made thereunder are being complied
with.
(2) If any person prevents or obstructs the entiy of any officer so
authorised, he shall, in addition to any other punishment to which he is
liable under any law for the time being in force, be liable on convic tion
before a Magistrate to a fine not exceeding two hundred rupees.
(3) Every officer authorised under this section shall be deemed to be
a public servant within the meaning of section 21 of the Indian Penal
Code.
10. Penally for non-payment of tax.—(I) If any oerson is admitted toi
payment to any place of entertainment and the provisions of section 5 are
not  complied  with,  the  pioprietor  of  the  entertainment  to  which  such
peison is admitted shall, on conviction by a Magistrate, be liable in respect
of each such offence to a fine not exceeding two hundred rupees and shall
m addition be liable to pay any tax which should have been paid.
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(2) Without piejudice to the provisions of sub-section (1) any officer
authonsed  by  the  local  authoiity  m  this  behalf  may  entei  any  place  of
entertainment while the entertainment is proceeding, and any place ordinarily
used as a place of entertainment at any reasonable time, and if satisfied that
the provisions of section 5 are not complied with, by order in writing prevent
the further use of such place for the purposes of any entertainment:
Provided that before preventing the further use of the place for the
purpose of the entertainment the proprietor of the entertaiment shall be given
a reasonable opportunity to show cause against the pioposed action.
(3) If the order under sub-section (2) is not compiled with, the officer
may request the officer in charge of the police station having jurisdiction
over the place to prevent the further use of such place for the puipose of any
entertainment and the officer in charge of the police station shall be bound to
comply with the request.
11. Power of the Government to make rules. —(1) The Government may
make  rules  to carry out>aH or  any of  the  purposes  of  this  Act,  not  in-
consistent therewith.
(2)In particular and without piejudice to the generality of the foiegoing
power they may make rules—
(a)for  the  composition  and  consolidated  payment  of  tax  undei
section 4; and
(b) for the presentation and disposal of applications for exemp -
tion from payment of the entertainments tax.
(3)In making any rules the Government mav provide that a breach
thereof  shall  be  punishable  with fine  which may extend to oi'^  hundred
rupees.
(4) All rules made under this Act shall be laid foi noi less than fourteen
days before the Legislative Assembly, as soon as possible after they are made
and  shall'  be  subject  to  such  modification  whether  by  way  of  repeal  or
amendment, as the legislative Assembly may make during the session in
which they are so laid or the scsion immediately follow* ing.
12. Power of Local Authority to make bye-laws.  — (!) Any local autho -
rity may make bye-laws not inconsistent with this Act or any rules made
thereunder—
(a) for the supply and use of labels oi stamped or embossed
tickets or for the stamping or embossing of tickets sent to be stamped or
embossed and for securing the defacement of labels when used;
(b)for the use of tickets covering the admission of more than one
person and the calculation of the tax 'hereon and for the payment of the tax
on the transfer from one part of a place of entertainment to another and on
payment for seats or other accommodation;
(c) for controlling the use of barriers or mechanical contrivances
(including the prevention of the use of the same barrier or mechanical conti
ivance for payments of a different amount) and for securing proper records of
admission by means of barriers or mechanical contrivances;
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(d) for the checking of admissions, the keeping of accounts and
furnishing of returns by the propiietors of entertainments to which the
provisions of section 4 are applied or m respect of which the arrange ments
approved by the local authority for furnishing returns are made under
section 5 ,
(e) for the renewal of damaged or spoiled labels ,
(f) for the keeping of accounts of all labels used under this Act;
(g) for the regulation of the time and place of holding an enter -
tainment and supervision thereof ;
(h) for the regulation of the time and mode of collecting the tax
under this Act, and
(i) in general, for carrying out the purposes of this Act.
(2) In making a byc-law, the local  authority may provide, that  a
breach thereof shall be punishable with fine which may extend to fifty
rupees and m case of a continuing breach with fine which may extend to
fifteen  rupees  for  every  day  dunng  which  the  breach  continues  after
conviction for the first breach.
(3) All  such  bye-laws  shall  have  effect  when  they  have  been
approved by the Director of Local Bodies or such othci officer not below
the rank of a Deputy Director of Local Bodies as may be autho rised by
him m that behalf and published in the Gazette, provided that in the case
of the bye-laws made by a Municipal Corpoiation, the approval ihall be
that of the Government.
13. Repeal and Savings —The Travancore-Cochin Local Authorities
Entertainments Tax Act, 1951 (Act VI of 1951) and the Madras Enter -
tainments  Tax Act,  1939 (Act  X  of  1939)  as  in force  in the  Malabar
District leferred to in subjection (2) of section 5 of the States Reorgani -
sation Act, 1956 (Central Act 37 of 1956) are hereby repealed.
Provided that any notification, order, rule or bye-law issued or made
under the repealed Acts, shall, so far as it is not inconsistent with the pi
ovisions of this Act, continue in force and be deemed to have been made
or issued under the pi ovisions of this Act, unless and until it is superseded
by any notification, order, rule or bye-law made or issued under this Act.

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