Relief to AGS Cinemas: Madras High Court reiterates Online booking charges on tickets not subjected to Entertainment Tax [Read Order]

AGS Cinemas - Madras High court - Online booking charges - tickets - Entertainment Tax - Taxscan

The Madras High Court while granting the relief to AGS Cinemas, reiterated that the Online booking charges on tickets not subjected to Entertainment Tax.

The appellant, AGS Cinemas raised the issue Whether the “online booking charges” charged by a Cinema Hall Owner besides the “cost of ticket” for entry into the cinema hall and enjoy the entertainment in the form of a movie, is a part of taxable receipt by the Cinema Owner for the purposes of the Tamil Nadu Entertainment Tax Act, 1939.

The assessing officer took a note of the letter of the assessee that levy of Service Tax and Entertainment Tax on online ticket booking charges are mutually exclusive but as the assessee has not paid Service Tax for online ticket booking charges, therefore he is liable to pay Entertainment Tax on charges collected for online booking.

The division bench of Justice Dr. Vineet Kothari and Justice M.S.Ramesh took note of the decision in the case of PVR Ltd. vs. Commercial Tax Officer wherein it was held that online booking is a separate service which is not uniformly charged for from all cine goers as mandatory payment for entertainment, and hence is not liable for imposition of entertainment tax.

The court noted the payment made for any other purpose connected with such entertainment will be taxable under the said Act, only if the person concerned is required to make such payment as a condition for entry.

Subscribe Taxscan AdFree to view the Judgment

Support our journalism by subscribing to Taxscan AdFree. We welcome your comments at

Related Stories