LexThe Kerala Local Authorities Entertainments Tax Act, 1961 (No.20 of 1961)
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401
ACT 20 OF 1961
THE KERALA LOCAL AUTHORlfiES ENTERTAINMENTS
TAX ACT, 1961.
Preamble.
Sections.
CONTENTS
I Short title, extent and commencement.
2 Definitiom.
3 General prOVISlOns regardmg the levy of the tax and the rate
of tax.
4 Composition and consolidated payment of tax.
C) 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 relat&ng to the imposztion and collectwn
of taxes on amusements and other enterlatnments zn the
State of Kerala. •
Preamble.-WHEREAS tt ts expedient to umfy and amend the law
relating to the tmposthon and collection of taxes on amusements and
other entertamments m the State of Kerala;
BE it enacted in the Twelfth Year of the Repubhc 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.
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(3) It shall come mto force on such date as the Government
may, by notification m the Gazette, appoint.
* Published in :the Gazette Extraordmary dated 3rd july 1961.
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2. Defimtwns -In th1s Act, unless the context otherwise requires-
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(I) 'admission' mcludes admissiOn as a spectator or as one of an
aud1ence and adrruss1on fo1 the purpose of amusement by takmg part
in an entertainment;
(2) 'admiS5ion to an entertainment' mcludes admiss1on to any
place m wh1ch the entertamment is held;
{3} 'agriculture' mcludes horticultUI e and breedmg of ammals of
every description;
(4) 'entertamment' mcludes any exlubition, performance, amuse
ment, game, sport or race to wh1ch pe1sons are admitted for pay
ment;
(5) 'mstitution' includes a compan}, !lociety club or other asso
ciation of persons by whatever name called,
(6) 'Local authority means-
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(a) in any C1ty, the CorporatiOn of that City;
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\b) in any Municipal area, the Municipal Council concerned;
and h ~ I .. [I{
(c) many area withm the jurisdiction
cha•at concerned; I 1• , , U , , Is I
(7) 'payment for adm1ssion' mcludes-:-
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of a Pancha yat, the Pan-
(a) any payment made by a person who, havmg been admitted
to one part of a place of entertamment, 1S subsequently admitted to
another part thereof. for admission to wh1ch a payment mvolvmg a tax
Or a h1gher ra~e ?f taX ,iS f<;qUJre~ j I .
f • ' { •• • • •• • ....
(b) any payment for seats or other accommodatiOn in a place of
entertammem; and
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(c) any payment for any purpose. whats,oever conqected with an
entertainment which a person. 1s requ1red 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.
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(8) 'proprietor' in re!atroh to any entertainment includes any person
responsible for the management thereof.
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3. General promszons regarding the levy of the tax and the rate of tax.~Any
10Ca:l a:uthority may Ie.vy a tax (hereinafter r~feo:ed,,to {1-S,tl\~. ~ntertain
ments tax) at a rate not ·Ies) than ten per ~ent ~nd.not mQre th,an twenty
five per cent on each payment for admiSSion to any entertainment.
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. • 4. Compositton and consolidated payment, of tax.-On the app!i~tion of
the propnetor of any entertainment m respect of which the entertain
ments tax is payable under section 3, the local au~hority·may, subject
to• such rules a~ may be. made b} the Governm~n~ .m this q{!'l\alf,. com
pound the tax payable m respect of such entertainment for a consoli
dated payment.
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5. Admission of persons to CTiterf'finmcnts subject to tax.-(!) Save m the
cases referred to in section 4, no person shall be adm1tted for payment
to any entertamment where the payment IS subject w entertainments
tax, except-
(a) w1th a ticket stamped with an impressed, embossed, engraved
or adhestve stamp tssued by the local authontv md1cating the proper
tax for such ticket; or
(b) m special cases, with the approval of the local authority,
through a harner which, or by means of a mechanical contrivance
which, automatically regu.ters the number of persons admitted,
unless the propnetor of the entet tamment has made arrangements
approved by the local authonty for furm~hmg returns of the payments
for admission to the entertainment and has giVen secunty approved by
the local authonty for the payment of the entertainments tax.
(2) Nothmg contamed in sub-sectwn (I) shall be deemed to pre
clude the local authority from tequirmg secunty from the p10prietor of
an entertainment fm the payment of the enterLammcnts tax many other
case.
6. Manner of payment of tax-~ I) The entertainment~ tax shall he
levied in respect of each person admitted for payment, and m the case
of admi~sion by ticket, shall he patd by means of a ticket referred to in
clause ta; ofsub-section (1) of section 5, and m the case of admission
otherwise than by t1cket, shall be calculated and paid on the number of
adm1ssions. ' ,
(2) The entertainments tax in the case of admission otherwise than
by ticket shall he recoverable from the proprietor.
(3) Where the payment for admission to an entertamment is made
wholly or partly by means of a lump ~urn pa1d as a subscnption or
contribution to any mstitution, or for a season ticket or for the 1 ight of
admission to a serie, of entertainments or to any entertamment during
a certain penod of tlme, the entertainments tax shall he pa1d on the
amount of the lump sum, hut 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 pnvileges, nghts or purposes besides the admission to
an entertainment or covers adnm~ion to an entertainment dlll mg any
period durmg wh1ch the tax has not been m operation, the tax shall bP.
levied on such am6unt as appears to the local authonty to represent the
right of admhsion to entertammcnts in respect of which the entertam
ments tax is payable.
7. Entertaznment excmptedjrom payment oftax.-(1) The entertainments
tax shall not be levied on payments for admission to any entertainment
where the local auth011ty JS sati~fied-
(a) that the ente"rtainment is of a wholly educational character;
or
{b) that the entertamment is provided for purpose~ wh1ch are
wholly or partly educational, cultural 01 scientific by an institution not
conducted or established for profit ; or
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(c) that the entertainment is prov1ded by an institution not
conducted for p10fit and ~tablished ~olely for tl•·- purposes of promoting
pubhc health or the interests of agriculture or a manufacturmg mdustry,
and whtch com1sts solely of an exhibition of articles which are of
mate11al interest in connection with quest1ons relatmg to public health
or a~nculture, or ofthe products of the industry for promotmg the
mte1ests of which the institution exist~ or of the materials, machmery,
apphances or food stuffs used m the p10duction of those products ; or
(d) that the whole or the net proceeds of the entertainment is
devoted to philanthropic, rehgious or charitable purposes.
(2) Any dispute as to whether an entertamment is of the character
referred to in any of the clauces of sub-~ection ( 1) ~hall be 1 eferred to
the Dtstrict Collector, whose dec1swn shalJ be fa1l.
(3) The Government may m consultatiOn with the local authonty
concerned, by 01der. exrmpt any particular entertainment or cla~s of
entertainments from habilitv to the tax. The local auth011ty shall have
power to grant exemption in any othn case subject to the previous
sanction of the Government.
8. Manner of recovery of tax a11d fznes under the Act.-(!) 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 1mposed ur.der tim Act or rules or bve-laws made
thereunder shall be recovered m the manner provided in the Code of
Criminal Procedure 1898, for the 1 ewvery of fines and shdl on recovery
be p.:1id to the local authority concerned to be applied for the general
purpo~es of such authority.
9. ltnpection by Local Authonty. (1) Any officer authorised by the
local authority in this behalf may enter any place of entertainment
while the entertamroent IS proct>eding and any place ordmanly u~ed as
a place of entertamment at .:1ny rca~onable ume, with a v1ew to secmg
whether the provisiom of this .Act or any lUles made thereunder are
being complied w1th.
(2) If any person prevents or obstructs the ent1 y of any officer so
authorised, he shall, m addition to any other pumshment to wh1ch he
is liable under any law for the ume being m force, be !table on convic
tion before a Magistrate to a fine not exceeding two hundred rupees.
(3) Every officer authori~d under this section shaH be deemed to
be a publ1c servant Within the meaning of section 21 of the lnd1an
Penal Code.
10. Penal~ for 11012-paymertl of tax.-( 1) If any oerson 1s adm1tted 101
payment to any place of entertamment and the proviSIOns of section 5
are not complied with. the p10pnetor of the entertammcnt to whilh
such pe1 son is adxmtted shall, on conviction by a Magistrate, be liable
in re~pect of car:h such offence to a fine not exceedmg two hundred
rupees and shall m addition be liable to pay any tax v..luch should have
been paid.
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(2) Wrthoul prejudice to the provrs10ns of bub-section (!) any
officer autllOIISed by the local auth01 ity m this behalf may ente1 any
place of entertamment while the entertamment IS proceed111g, and any
place ordmanly used as a place of entertainment at any reasonable
ttme, and rf ~atisfied that the prov1sions of section 5 are not complied
wuh, by order m writmg pre\ent the further use of such place for the
purposes of any entertainment:
Provided that before preventing the funher use of the place for the
purpose of the entertainment the proprietor of the entertatment shall be
given a reasonable opportdmty to show cause agamst the p1oposed
action.
(3) If the order under sub·sectwn (2) ~~ not compiled with, the
officer may request the officer m charge of the pohce station havmg
junsd1ction over the place to prevent the further use of such place for
the pUI pose of any entcrtarnmen t and the officer m charge of the pohcc
~tat1on shall be bound to comply with the request.
II. Power of the Government to make rules.- (I) The Government may
makt" rules to carry out -a\ I or any of the purposes of th1s Act, not in
consist('nt therewith.
(2) In particular and without pleJUdice to the generality of the
f01egoing power they may make rules-
(a) for the composition and comohdated payment of tax undf"I
section 4; and
(b) for the presentation and dr~posal of apphcat10ns for exemp
tion from pa>ment ofthe entertamments ta>...
(3) In making any rules the Government mav provide that a
breach thereof shall be pumshabie with fine which may extt"nd to o:'"
hundred rupees.
(4) Ail rules made under thrs Act shall be la1d foi nol less than
fourteen days before the l cg1slatlVC Assembly, ~s soon as poss1ble after
they are made and shall' be ~ubject to such modrfication whether by way
of repeal or amendment, as the legislative Assembly may make during
the se~sion in wh1ch they are so laid or the ses~ion immediately follow·
ing.
12. Power of Local Authorzty to make bye-laws.- (I) Any local autho
rity may make bye-Jaws not inconsistent w1th this Act or any rules made
thereunder-
( a) for the supply and use of labels 01 stamped or embossed
tickets or for the stampmg or embossing of t1ckets ;ent to be stamped or
embo~sed and for securing the defacement of labels when used;
(b) for the use of tickets coverirg 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 othtT accommodation;
(e) for controlling the use of barriers or mechanical contrivances
(including the prevention of the use of the same barrier or mechanical
contrivance 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 prop1 ietors of entertainments to which the
proviSions of section 4 are applied or m respect of wlHch the arrange
ments approved by the local authonty for furnishmg returns are made
under section 5 ,
(e) for the renewal of damaged or spoiled labels ,
(f) for the keepmg of accounts of all labels used under this Act;
(g) for the regulatiOn of the time and pldce of holding an enter-
tainment and supervision thereof;
(h) for the regulation of the tim~ and mode of collecting the
tax under thi~ Act, and
(i) in general, for carrymg out the purposes of th,s Act.
(2) In makm~ a bye-Jaw, the local authority may provide, that a
breach thereof shall be puntshable v-. ith fine wh1ch may extend to fifty
rupees and m case of a contmuing b:each with fine wluch may extend
to fifleen rupees for every day du11ng which the breach continues after
convict10n for the fint breach.
(3) All such bye-laws shall have effect when they have been
approved by the Director of Local Bodie:. or such othe1 officer not
below the rank of a Deputy Dtrcctor of Local Bodies as may be autho
riSf'd by him m that behalfand published m the Gazette, provided
that in the case of the bye-laws made by a Municipal CorpOiation, the
approval ~hall be that ofthe Government.
13. &peal and Savmgs -The Travancorc-Cochm 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 1 eferred to m ~u b-,ection (2) of sect1on 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 1t is not mcons1~tent with
the piOvistons of this Act, contmue in force and be deemed to have
been made or issued under the pt ovisions of this Act, unless .md until
it is superseded by any notification, order, rule or bye-law made or
issued under this Act.