ANDHRA PRADESH ENTERTAINMENTS TAX ACT, 1939

Act No. 10 of 1939

An Act to impose taxes on [entertainments] in the [State of Andhra Pradesh]. Whereas it is expedient to provide for the levy by the State Government of taxes on entertainments, to repeal the Madras Local Authorities Entertainments Tax Act, 1926, (Madras Act V of 1927), and to provide for the payment of compensation to local authorities now levying a tax under the Act aforesaid; It is hereby enacted as follows:--

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S.1 Short title, extent and commencement

(1) This Act may be called 1[The Andhra Pradesh Entertainments Tax Act, 1939].

(2) It extends to whole of the 2[State of Andhra Pradesh].

(3) This section shall come into force at once, and the rest of this Act shall come into force on such date3 as the 4[State] Government may by notification in the 5[Andhra Pradesh Gazette] appoint.

1. Substituted by Act No. 9 of 1961.

2. Substituted by Act No. 12 of 1958.

3. W.e.f. 1-10-1958 by G.O.Ms. No. 1555, Rev., dated 20-8-1958.

4. Substituted by Andhra Adaptation of Laws (Amendment) Order, 1954.

5. Substituted by Act No. 8 of 1969, w.e.f. 24-01-1969.

S.2 Repeal of Madras Act V of 1927

The Madras Local Authorities Entertainments Tax Act, 1926, is hereby repealed.

S.3 Definitions

In this Act, unless there is anything repugnant in the subject or context--

• (1) "admission " includes admission as a spectator or as one of an audience, 1[to an entertainment];
• 2[(2) "admission to an entertainment" includes admission to any place in which an entertainment is held or entry to a place of amusement or recreation is provided for;]
• 3[(2a) "Cinematograph" includes any apparatus for the representation of moving pictures or series of pictures;
• (2aa) "Cinematograph film" includes video films, the sound track and any work produced by-any process analogous to cinematography];
• (3) 7[xxx];
• 8[(4) "entertainment" means cinematograph exhibition, amusements and other forms of entertainment such as musical concerts, magic shows, Go-karting, including recreation in theme parks, to which persons are admitted on payment];
• (5) 7[xxx];
• (6) "local authority" means--
  • (a) In the city of Hyderaba
    

S.4 Tax on Entertainments

1[(1) There shall be levied and paid to the State Government a tax on the amount collected on actual sale of tickets for admission to every show (hereinafter referred to as Entertainments Tax) in respect of entertainments held in the theatres specified in column (2) of the table below and located in the local areas specified in the corresponding entry in column (1) of the said table, calculated at the rates specified in the corresponding entry in column (3) thereof,

Local Authority	Theatre	Rate of tax of sale of tickets
(a) Municipal Corporation	(i) A/C and Air Cooled Theatres	20%
(a) Municipal Corporation	(ii) Other Theatres	18%
(b) Selection Grade Municipality	(i) A/C and Air Cooled Theatres	20%
(b) Selection Grade Municipality	(ii) Other Theatres	18%
(c) Special Grade Mun

S.4A Tax on Entertainment Shows

1[(1) In addition to the tax under Section 4, there shall be levied and paid to the State Government in the case of entertainments held in the local areas specified in Column (1) of the Table below, a tax calculated at the rates specified in the corresponding entry in Column (2) thereof:--

Local Authority	Rate of tax for every show, other than the show specified in subsection (1-A).
(a) Municipal Corporations, the Secunderabad Cantonment Area, Selection Grade, Special Grade and First Grade Municipalities.	Twelve Rupees
(b) Second Grade and Third Grade Municipalities.	Eight Rupees
(c) Gram Panchayats, townships and any other local authorities: (i) with a population of 15,000 and above.	Four Rupees
(c) Gram Panchayats, townships and any other local authorities: (ii) with a population of less than 15,000.	Two Rupees

3[

S.4AA Section 4AA

1[xxx] .

1. Omitted by Act No. 3 of 1973, w.e.f. 01-04-1973.

S.4B Remission

1[The State Government may, by general or special order remit in whole or in part, the tax payable under Section 4-A 2[in respect of any entertainment or class of entertainments] if they were satisfied that such remission is necessary, having regard to the locality, or the capacity of the hall, in which the exhibition is held, or any other sufficient cause.

1. Inserted by Act No. 12 of 1958, w.e.f. 01-10-1988.

2. Substituted ibid, for the words "in respect of any cinematograph exhibition or class of such exhibitions".

S.4C Tax on amusement and recreation

1[Irrespective of local area there shall be levied and paid to the State Government a tax at the rate of twenty percent (20%) on each payment for admission to or participation in amusement or recreation. The Tax so levied shall be paid by the proprietor of such amusement or recreation.]

1. Inserted by Act No. 31 of 2005, w.e.f. 11-10-2010.

S.5 Section 5

1[xxx]

1. Omitted by Act No. 32 of 2005. w.r.e.f. 4-6-2005.

S.6 Admission to entertainments

1[No person shall be admitted on payment to an entertainment except with a ticket issued in such manner and subject to such conditions as may be prescribed.

(2) No person shall be admitted on payment to any entertainment unless the proprietor has with the previous approval of the prescribed authority made arrangements for furnishing returns of the payments for admission to the entertainment, and has, for the payment of the entertainment tax, given such security and in such manner as may be specified by the prescribed authority.

(3) Nothing in sub-section (2) shall be deemed to preclude the prescribed authority from requiring security from the proprietor of an entertainment for the payment of the entertainment tax in any other case.

1. Substituted by Act No. 21 of 1984, w.e.f. 01-01-1984.

S.7 Section 7

1[xxx].

1. Omitted by Act No. 24 of 1984, w.e.f. 01-01-1984.

S.8 Entertainments Exempted from payment of Tax

1[2[(1) The State Government may, by general or special order, grant exemption from payment of the entertainment tax to any entertainment where they are satisfied,--

• (a) that the entertainment is meant for the education and entertainment of the children;
• 2[(b) that the entertainment is a film produced or exhibited by or under the authority of the Government of India or the State Government or under the auspices of the Director of film festivals, the National or State Government Corporation;
• (c) that the entertainment belongs to such other class as may be prescribed.

2[(2) Any exemption granted under sub-section (1) may be subject to such restrictions and conditions as may be specified in the order and may extend,--

• (a) to the whole of the State or to such area or areas as may be specified in such order; or
• (b) to specified class of theatres in regard to the whole or any part of their entertainments during any period
  

S.9 Returns

1[(1) Every proprietor of an entertainment shall submit such returns relating to payments for admission, to such authority, in such manner and within such time as may be prescribed.

(2) If the prescribed authority is satisfied that any return submitted under sub-section (1) is correct and complete, it shall assess the amount of tax payable by the proprietor on the basis thereof.

(3) If no return is submitted by the proprietor of the entertainment under sub-section (1) before the date prescribed, or if the return submitted by him appears to the prescribed authority to be incorrect or incomplete, the prescribed authority shall, after giving the proprietor an opportunity of proving the correctness and completeness of any return submitted by him or that no return was due from him, and after making such inquiry as it considers necessary, assess to the best of its judgment the amount of tax payable by the proprietor under this Act].

1. Substituted by Act No. 3 of 197

S.9A Payment for admission, etc., escaping assessments

1[2[(1) Where, for any reason any entertainment show has escaped assessment to tax under Section 4 or Section 4-A, the prescribed authority may, subject to the provisions of sub-section (3) and at any time within such period as may be prescribed, assess to the best of its judgment the tax due on such entertainment show under Section 4 or Section 4-A, as the case may be, after making such enquiry as it considers necessary and after giving the proprietor a reasonable opportunity to show cause against such assessment).

(2) 3[Where, for any reason, any entertainment show has been assessed] at a rate lower than the rate at which it is assessable under Section 4 or 4[Section 4-A 5[xxx] as the case may be, the prescribed authority may, subject to the provisions of sub-section (3) and at any time within such period as may be prescribed, re-assess the tax due on such payment or entertainment show under Section 4 or 4[Section 4-A 5[xxx] as the case may be, after making such enquiry as

S.9B Appeals

1[(1) Any proprietor aggrieved by an order passed or a proceeding recorded by any authority under the provisions of this Act, may within thirty days from the date on which the order or proceeding was served on him, Appeal to such appellate authority as may be prescribed:

Provided that the appellate authority may admit an appeal preferred after a period of thirty days aforesaid if it is satisfied that the proprietor has sufficient cause for not preferring the appeal within that period.

(2) The appeal shall be in such form and verified in such manner, as may be prescribed, and shall be accompanied by a fee calculated at the rate of one per cent of the tax under dispute, subject to a maximum of rupees fifty.

(3) where an appeal is admitted under sub-section (1), the appellate authority may, on an application filed by the appellant and subject to such terms and conditions as it may think fit, order stay of collection of the tax under dispute pending disposal of the

S.9C Revision by the Entertainments Tax Commissioner and certain other authority

(1) The Entertainments Tax Commissioner or the Entertainments Tax Joint Commissioner may suo motu call for and examine the record of any order passed or proceedings recorded by any authority, officer or person subordinate to him under the provisions of this Act, including subsection (2), for the purpose of satisfying himself as to the legality or propriety of such order or as to the regularity of such proceedings and may pass such order in reference thereto as he thinks fit.

(2) Power of the nature referred to in sub-section (1) may also be exercised by the Entertainments Tax Deputy Commissioner and the Commercial Tax Officer in the case of orders passed or proceedings recorded by authorities, officers or persons subordinate to him.

(3) In relation to any order passed under this Act, the powers conferred by sub-sections (1) and (2) shall be exercisable only within such period, not exceeding four years, from the date on which the order was served on the proprietor as m

S.9D Revision by the High Court

(1) The proprietor or the authority prescribed in this behalf may, within sixty days from the date on which an order under sub-section (5) or Section 9-B was communicated to him, prefer a petition to the High Court against the order on the ground that the appellate authority has either decided erroneously, or failed to decide, any question of law:

Provided that the High Court may admit a petition preferred after the period of sixty days aforesaid, if it is satisfied that the petitioner had sufficient cause for not preferring the petition within that period.

(2) The petition shall be in the prescribed form, shall be verified in the prescribed manner and shall be accompanied by a fee of rupees one hundred.

(3) If the High Court, on perusing the petition, considers that there is no sufficient ground for interfering, it may dismiss the petition summarily:

Provided that no petition shall be dismissed unless the petitioner has had a reasonable opportunity of b

S.9E Appeal to High Court

(1) Any proprietor, objecting to an order passed by the Entertainments Tax Commissioner or Entertainments Tax Deputy Commissioner suo motu, under sub-section (1) or sub-section (2) of Section 9-C may appeal to the High Court within sixty days from the date on which the order was communicated to him:

Provided that the High Court may admit on appeal preferred after the period of sixty days aforesaid if it is satisfied that the proprietor had sufficient cause for not preferring the appeal within that period.

(2) The appeal shall be in the prescribed form, shall be verified in the prescribed manner and shall be accompanied by a fee of rupees one hundred.

(3) The High Court shall, after giving both parties to the appeal, a reasonable opportunity of being heard, pass such order thereon as it thinks fit.

(4) The provisions of sub-sections (6), (7) and (8) of Section 9-D shall apply in relation to appeals preferred under sub-section (1) of this section as they a

S.9F Limitation in respect of certain assessments or re-assessments ordered

Notwithstanding anything in Section 9-A and 9-D, where a fresh assessment or revision of an assessment is required to be made at any time in pursuance to or in consequence of or to give an effect to any order made {or direction given under Section 9-B or 9-C or 9-D or 9-E by any authority or the High Court, such fresh assessment or re-assessment or revision shall be made within three years from the date of receipt of such order by the assessing or revising authority].

S.10 Payment of tax and other dues under the Act

1[(1) If the tax payable or penalty levied or any other amount due under this Act, is not paid within the time specified for such payment the proprietor shall pay in addition to such tax or penalty, an interest at the rate of one rupee and fifty paise for every one hundred rupees or part thereof for each month or part thereof from the date specified for its payment.

(2) The deputy Commissioner may, by an order, on an application made to him by the proprietor allow extension of time for payment of tax, penalty or other amount due under this Act or permit the payment thereof in such installments, within such intervals and subject to such conditions as he may specify in the said order, having regard to the circumstances of each case.

(3) In every case where extension of time for such payment is allowed or where such payment of installments is permitted, the proprietor shall pay, interest at the rate of one rupee and fifty paise for every hundred rupees or part thereof, f

S.10A Powers of Deputy Commissioner under Revenue Recovery Act

1[(1) The Deputy Commissioner shall have the powers of Collector under the Andhra Pradesh Revenue Recovery, Act, 1864, for the purpose of Recovery of any amount due under the Act.

(2) Subject to the provisions of sub-section (3), all Deputy Commercial Tax Officers shall, for the purposes of recovery of any amount due under the Act, have the powers of the Mandal Revenue Officer under the Andhra Pradesh Rent and Revenue Sales Act; 1839 (Act 7 of 1839), for the sale of property distrained for any amount due under the Act.

(3) Notwithstanding anything contained in Andhra Pradesh Rent and Revenue Sales Act, 1839, the Deputy Commercial Tax Officer, in exercise of the powers conferred by sub-section (2) shall be subject to the control and superintendence of the Deputy Commissioner.

1. New Sections 10-A. 10-B & 10-C Inserted by Act No. 27 of 2008.

S.10B Recovery of Tax and other dues

(1) The Commissioner or any other authority prescribed may at any time or from time to time, by notice in writing (a copy of which shall be forwarded to the dealer at his last address known to such authority) require any person from whom money is due or may become due to the defaulter, or any person who holds or may subsequently hold money for, or on account of the defaulter, to pay such authority, either forthwith if the money has become due or is so held, within the time specified in the notice but not before the money becomes due or is so held, so much of the money as is sufficient to pay the amount due by the defaulter in respect of arrears of tax, interest, penalty or the whole of the money when it is equal to or less than that amount.

(2) The authority prescribed may, at any time, or from time to time, amend or revoke any such notice or extend the time of making any payment in pursuance of the notice.

(3) Any person making any payment in compliance with the noti

S.10C Liability under the Act to be the first charge

Notwithstanding anything to the contrary contained in any Law for the time being in force any amount of tax, including deferred tax, including tax deferred in general or under any scheme, by what ever name called by the Government, penalty, interest and any other sum payable by the proprietor or any other person under the Act, shall be the first charge on the property of such proprietor, or any other person as the case may be.]

S.11 Inspection

(1) (a) Any officer authorised by the 1[State] Government in this behalf may enter any place of entertainment while the entertainment is proceeding; and any place ordinarily used as a place of entertainment 1[including any building, enclosure or office attached thereto where tickets or any records, documents and registers are kept] at any reasonable time, for the purpose of seeing whether the provisions of this Act or any rules made thereunder are being complied with.

(b) Every officer so authorised shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code (Central Act 45 of 1860).

(2) The proprietor of every entertainment or the owner or person in charge of any place ordinarily used as a place of an entertainment 2[including any building, enclosure or office attached thereto where tickets or any records, documents and registers are kept] shall give every reasonable assistance to the inspecting officer in the performance of his d

S.12 Exemption from payment for admission

The officer referred to in Section 11 or any other officer who has to enter any place of entertainment in pursuance of a duty imposed upon him by or under this Act or any other law shall not be required to pay for his admission to the entertainment.

S.13 Payment of compensation to local authorities

1[(1) Subject to the provisions of Section 13-A] the proceeds of the tax payable under Section 4 2[xxx] and the sum payable under Section 5 and collected every year in respect of entertainments held within the limits of any local authority shall be apportioned as follows:--

• (a) three per cent of the proceeds of the tax to be credited to the State Government;
• (b) 3[ninety percent] of the proceeds of the tax to be paid to the local authority; and
• (c) 3[seven per cent] of the proceeds of the tax to be expended for the purposes of promoting the cinematograph films and arts:

Provided that the State Government may direct that the 3[ninety per cent] of the proceeds of the tax shall be distributed between the local authority aforesaid and any other local authority or authorities in the neighbourhood in such proportions as the State Government may fix:

4[Provided further that nothing contained in this sub-section shall be deemed to prevent

S.13A Government to make good any deficiency in compensation

1[(1) In the territories specified in sub-section (1) of Section 3 of the State Reorganisation Act, 1956, (Central Act 37 of 1956), if the amount payable to any local authority under Section 13 falls short of the actual amount of tax realised by such authority during the year ending with the 31st March, 1957, after deducting the collection charges the State Government shall make good such deficiency.

(2) The State Government shall determine the amount if any, which should be paid to local authorities under sub-section (1) and their determination shall be final).

1.Inserted by Act No. 12 of 1958, w.e.f. 01-10-1958.

S.14 Penalties

1[The proprietor of any entertainment who--

• (a) admits any person on payment to any place of entertainment in contravention of the provisions of Section 6;
• (b) fails to pay tax due from him within the time prescribed;
• (c) fraudulently evades the payment of any tax due under this Act; or
• (d) contravenes any of the provisions of this Act, shall, on conviction by a Magistrate, be liable in respect of each such offence to a fine which may extend to one thousand rupees, and shall in addition, be liable to pay any tax which should have been paid].

1. Substituted by Act No. 16 of 1985, w.e.f. 07-09-1984.

S.15 Power to compound offences

The prescribed authority may accept from any person who has committed or is reasonably suspected of having committed an offence against this Act, by way of composition of such offence--

• 1[(a) where the offence consists of the failure to pay, or the evasion of. any tax payable under this Act, in addition to the tax so payable, a sum of money not exceeding one thousand rupees or double the amount of the tax payable, whichever is greater; and
• (b) in other cases, a sum of money not exceeding one thousand rupees].

1. Substituted by Act No. 16 of 1985, w.e.f. 07-09-1984.

S.15A Levy of Entertainment Tax on Cable Service

1[2[(1) Every Master Cable Operator shall pay entertainment tax every month for the number of connections provided to the subscribers either directly or through this cable Operator at the rates specified under each category as given in the table below:-

Sl. No.	Category	Local Area	Rate per Connection per month
1.	A	Municipal Corporations and Secunderabad Cantonment area	Rs. 5/-
2.	B	Selection Grade Municipalities	Rs. 4/-
3.	C	Grade 1 11 Municipalities	Rs. 3/-
4.	D	Other Municipalities	Rs. 21-
5.	E	Major Gram Panchayats	Rs. 200/- p.m. (Irrespective of no. of connections)
6.	F	Minor Gram Panchayats	Rs. 100/- p.m. (Irrespective of no. of connections)

S.15B Levy of Licence Fees

1[2[Every Master Cable Operators seeking a licence under any category shall be charged a fee of Rs. 100/- payable before 31st January of the year for which the licence has to be renewed.]

1. Inserted by Act No. 18 of 1997.

2. Substituted by A.P. Entertainment Tax (Amendment) Act No. 26 of 2002, w.e.f. 1-1-2003.

S.15C Collection of Security Deposit

1[2[Every Master Cable Operator who is seeking licence under Section 15-B for a master control room shall deposit an amount at the rates specified under each category in the Table given below towards security deposit:--

Sl. No.	Category	Local Area	Amount of deposit
1.	A	Municipal Corporations and Secunderabad Cantonment area	Rs. 10,000/-
2.	B	Selection Grade Municipalities	Rs. 5,000/-
3.	C	Grade I II Municipalities	Rs. 3,000/-
4.	D	Other Municipalities	Rs. 2,000/-
5.	E	Major Gram Panchayats	Rs. 1,000/-
6.	F	Minor Gram Panchayats	Rs. 500/-]

1. Inserted by Act No. 18 of 1997.

2. Substituted by A.P. Entertainment Tax (Amendment) A

S.16 Power to make rules

(1) The 1[State] Government may make rules for securing the payment of the entertainments tax and generally for carrying into effect the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, they may make rules--

• (a) 2[xxx]
• (b) for the use of tickets covering the admission of more than one person and the calculation of the tax thereon, and for the payment of the tax on 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 contrivance for payment of a different amount) and for securing proper records of admission by means of barriers or mechanical contrivances;
• (d) for the checking of admissions, the keeping of accounts and the furnishing of returns by the proprietors of entertainments, to which
  

S.17 Bar of certain proceedings

(1) No suit, prosecution or other proceeding shall lie against any officer or servant of the 1[State] Government, for any act done or purporting to be done under this act, without the previous sanction of the 1[State] Government.

(2) No officer or servant of the 1[State] Government shall be liable in respect of any such act in any civil or criminal proceeding, if the act was done in good faith in the course of the execution of duties or the discharge of functions imposed by or under this Act.

1. Substituted by Adaptation of Laws (Amendment) Order, 1954.

S.17A Bar of jurisdiction of Courts

1[Save as otherwise expressly provided in this Act, no Court shall entertain any suit, or other proceeding to set aside or modify or question the validity of any assessment, order or decision made or passed by any officer or authority under this Act or Rules made thereunder or in respect of any other matter falling within its or his scope.

1. Inserted by Andhra Pradesh Act No. 4 of 1986 w.e.f. 03-01-1986.

S.18 Limitations for certain suits and prosecutions

No suit shall be instituted, against the 1[State] 2[Government] and no suit, prosecution or other proceeding shall be instituted against any officer or servant of the 1[State] Government in respect of any act done or purporting to be done under this Act unless the suit, prosecution or other proceedings is instituted within six months from the date of the act complained of.

1. Substituted by Adaptation of Laws (Amendment) Order, 1954.

2. Inserted by Act No. 8 of 1969, w.e.f. 24-01-1969.

S.19 Proceedings etc., against officers and servants of a local authority collecting the tax

If any local authority has been authorized under this Act to collect the entertainments tax on behalf of the 1[State] Government, the provisions of Sections 17 and 18 shall apply in regard to the officers and servants of such authority in the same manner as they apply in regard to the officers and servants of the 1[State] Government.

1. Substituted by Adaptation of Laws (Amendment) Order, 1954.

S.19A Power to exempt tax payable under Section 5

Power to exempt tax 2 [xxx] payable under Section 5

1[The State Government may, by notification in the Andhra Pradesh Gazette, and for reasons to be specified therein, exempt, whether prospectively or retrospectively, any proprietor or class of proprietors 3[from the payment of the amount of tax] 4[referred to in Section 4 or in sub-section (1) of Section 5] or any part thereof subject to such conditions and restrictions as they may deem fit to impose and may in like manner vary or cancel such notification].

1. This section was inserted by Act No. 21 of 1979.

2. Omitted by Act No. 24 of 1984 w.e.f. 01-01-1984.

3. Substituted for from the levy of tax payable under Section 4-C or the fixed sum.

4. Substituted by Act 23 of 1991, Andhra Pradesh Gazette (Ext.) Part IV-B, dated 23-10-1991. w.e.f. 24-04-1991.

S.20 Delegation of certain powers of the State Government

(1) The 1[State] Government may, by notification in the 2[Andhra Pradesh Gazette], delegate all or any of their powers under this Act except those conferred upon them by sub-section (3) of Section 1, Section 16, 3[Section 19-A] and this section, to any person or authority subordinate to the 1[State] Government and may in like manner withdraw any powers so delegated.

(2) The exercise of any powers, delegated under sub-section (1) shall be subject to such restrictions, limitations and conditions, if any, as may be laid down by the 1[State] Government, and shall also be subject to control and revision by them.

1. Substituted by Adaptation of Laws (Amendment) Order, 1954.

2. Substituted by Act No. 8 of 1969 w.e.f. 24-01-1969.

3. Inserted by Act No. 21 of 1979.