Omitted - Admission to entertainment events or access to amusement facilities - From 1.7.2012 to 31.3.2015 - Service Tax Practice Manual / Ready Reckoner - Service Tax

Chapter 10 Admission to entertainment events or access to amusement facilities From 1.7.2012 To 31.5.2015 [Omitted from Negative List vide Finance Act, 2015] These entries in the definitions have been omitted by the Section 107 (a) and (c) of the Finance Act, 2015. These changes will come into effect from 1st June, 2015. The implication of these changes are as follows,- (a) Service Tax shall be levied on the service provided by way of access to amusement facility providing fun or recreation by means of rides, gaming devices or bowling alleys in amusement parks, amusement arcades, water parks and theme parks. (b) Service tax shall be levied on service by way of admission to entertainment event of concerts, pageants, musical performances concerts, award functions and sporting events other than the recognized sporting event, if the amount charged is more than ₹ 500 per person for the right to admission to such an event. Scope of Negative Service Section 66D(j) - Upto 31.5.2015 Admission to entertainment events or access to amusement facilities Meanings and Definitions: Section 65B(9) - amusement facility means a facility where fun or recreation is provided by means of rides, gaming devices or bowling alleys in amusement parks, amusement arcades, water parks, theme parks or such other places but does not include a place within such facility where other services are provided; Section 65B(24) - entertainment event means an event or a performance which is intended to provide recreation, pastime, fun or enjoyment, by way of exhibition of cinematographic film, circus, concerts, sporting event, pageants, award functions, dance, musical or theatrical performances including drama, ballets or any such event or programme; Clarification by the Board (Taxation Guide Guidance Note 4 Exemptions dated 20.06.2012) 4.10.1 If a cultural programme, drama or a ballet is held in an open garden and not in a theatre would it qualify as an entertainment event? Yes. The words used in the definition are 'theatrical performances' and not 'performances in theatres'. A cultural programme, drama or a ballet preformed in the open does not cease to be a theatrical performance provided it is performed in the manner it is performed in a theatre, i.e. before an audience. 4.10.2 Would a standalone ride set up in a mall qualify as an amusement facility? Yes. A standalone amusement ride in a mall is also a facility in which fun or recreation is provided by means of a ride. Access to such amusement ride on payment of charges would be covered in the negative list. 4.10.3 Would entry to video parlors exhibiting movies played on a DVD player and displayed through a TV screen be covered in the entry? Yes. Such exhibition is an exhibition of cinematographic film. 4.10.4 Would membership of a club qualify as access to an amusement facility? No. A club does not fall in the definition of an amusement facility. 4.10.5 Would auxiliary services provided by a person, like an event manager, for organizing an entertainment event or by an entertainer for providing the entertainment to an entertainment event organizer be covered in this entry? No. Such services are in the nature of services used for providing the service specified in this negative list entry and w2ould not be covered in the ambit of such specified service by operation of the rule of interpretation contained in clause (1) of section 66F of the Act .