Tamil nadu act 005 of 1978 : Tamil Nadu Entertainments Tax and Local Authorities Finance (Amendment) Act, 1978

Section 1. Short title and commencement

1. Short title and commencement.- (1) This Act may be called the Tamil Nadu Entertainments Tax and Local Authorities Finance (Amendment) Act, 1978.

(2) It shall be deemed to have come into force on the 26th December, 1977.

Section 2. Amendment of Tamil Nadu Act X of 1939

2. Amendment of Tamil Nadu Act X of 1939.- In the Tamil Nadu Entertainments Tax Act, 1939 (Tamil Nadu Act X of 1939),-

(1) in section 4-A, for the Explanation under sub-section (1), the following Explanation shall be substituted, namely:-

"Explanation.-For the purposes of this sub-section and of sections 4-C, 5-A and 5-B, ‘show’ means, one complete exhibition or the repeated exhibition of a full length feature film with or without approved documentaries and news reviews, for one payment for admission.";

(2) in section 5, after the words "on the application of the proprietor of any entertainment", the expression "other than a proprietor of an entertainment held in any theatre specified in column (2) of the Table under section 5-A or 5-B and located in the local areas specified in the corresponding entry in column (1) of the said Table" shall be inserted;

(3) after section 5, the following sections shall be inserted, namely:-

"5-A. Tax on shows held in certain theatres.- (1) Notwithstanding anything contained in this Act or in the Tamil Nadu Local Authorities Finance Act, 1961 (Tamil Nadu Act 52 of 1961) (hereinafter referred to in this section as the Local Authorities Finance Act), in the case of cinematograph exhibitions 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, there shall be levied and paid to the State Government, a tax at the rate specified in the corresponding entry in column (3) thereof.

The Table

Explanation I.- For the purposes of this section and of section 5-B, "gross collection capacity" in relation to a cinematograph exhibition, means the notional aggregate of all payments for admission for a show (inclusive of the entertainments tax and the surcharge and additional surcharge on the entertainments tax leviable under the Local Authorities Finance Act or under this Act) if all the seats or other accommodation available in the theatre were occupied by spectators.

Explanation II.-For the purposes of this section and of section 5-B,-

(i) "Municipalities, Second Grade" means the Municipalities specified in Part A of Schedule I;

(ii) "Municipalities, Third Grade" means the Municipalities specified in Part B of Schedule I;

(iii) "Selection Grade Panchayat Towns" means the Selection Grade Panchayat Towns specified in Schedule II.

(2) The tax levied under sub-section (1) shall be recoverable from the proprietor.

(3)(a) Every proprietor of a cinematograph exhibition who is liable to pay tax under this section or who opts to pay tax under section 5-B shall submit a return relating to the actual number of shows held by the proprietor in a week to the prescribed authority in such manner and within such period as may be prescribed and also give prior notice to the prescribed authority of any proposed variation in the gross collection capacity per show in respect of the place of entertainment. Such prior notice shall not be less than such period as may be prescribed.

(b) If the prescribed authority is satisfied that any return submitted under clause (a) is correct and complete, it shall assess the proprietor on the basis thereof.

(c) If no return is submitted by the proprietor under clause (a) within the prescribed period, or if the return submitted by him appears to the prescribed authority to be incomplete or incorrect, the prescribed authority shall, after making such enquiry as it may consider necessary, assess the proprietor to the best of its judgment;

Provided that before taking action under this clause, the proprietor shall be given a reasonable opportunity of proving the correctness or completeness of any return submitted by him or that no return was due from him.

(4) The tax payable under sub-section (1) shall be calculated for the actual number of shows held by the proprietor in a week.

(5) No proprietor of a cinematograph exhibition who is liable to pay tax under this section shall conduct such cinematograph exhibition unless he has given security up to an amount and in a manner approved by the State Government for the payment of tax under this section.

5-B. Option to pay.- (1) In lieu of the tax payable under section 5-A, in the case of cinematograph exhibitions 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, the proprietor of such cinematograph exhibition may, at his option and subject to such conditions as may be prescribed, pay the amount of tax to the State Government every week as specified in the corresponding entry in column (3) thereof.

The Table

(2) The amount of tax referred to in sub-section (1) shall be payable by the proprietor, irrespective of the actual number of shows held by him in a week.

(3) Any proprietor who opts to pay tax under this section, shall apply in the prescribed form, to the prescribed authority to be permitted to pay the tax under this section.

(4) On being so permitted, such proprietor shall pay the tax for every week as specified in sub-section (1).

(5) The option permitted under this section shall continue to be in force till the end of the financial year in which such option is permitted.

(6) No proprietor of a cinematograph exhibition who opts to pay tax under this section, shall conduct such cinematograph exhibition unless he has given security up to an amount and in a manner approved by the State Government for the payment of tax under this section.

5-C. Tax under section 5-A or 5-B to be in lieu of the other taxes under this Act or under Tamil Nadu Act 52 of 1961.- (1) No tax or additional surcharge shall be payable under section 4, 4-A, 4-B or 4-C of this Act and no surcharge shall be payable under the Tamil Nadu Local Authorities Finance Act, 1961 (Tamil Nadu Act 52 of 1961), by any proprietor of a cinematograph exhibition held in the theatres specified in column (2) of the Table under section 5-A or 5-B, and located in the local areas specified in the corresponding entry in column (1) of the said Table.

(2) The State Government may make rules whether prospectively or retrospectively for carrying into effect the provisions of sections 5-A and 5-B. Such rules shall also provide for the issue of tickets for admission and the manner in which and the conditions subject to which a ticket may be issued.

(3) The provisions of this Act (other than sections 4, 4-A, 4-B, 4-C, 6 and 7) and of the rules made thereunder shall, so far as may be, apply in relation to the tax payable under section 5-A or 5-B, as they apply in relation to the tax payable under section 4-A.";

(4) in sub-section (2) of section 8, for the words "The State Government may", the words "The State Government may subject to such conditions as they deem fit." shall be substituted;

(5) to sub-section (1) of section 13, the following proviso shall be added at the end, namely:-

"Provided also that where in any case the proprietor of a cinematograph exhibition held in the theatres specified in column (2) of the Table under section 5-A or 5-B and located in the local areas specified in the corresponding entry in column (1) of the said Table pays tax under section 5-A or 5-B, there shall be paid to the municipality, the panchayat and the panchayat union council concerned such sum as may be specified by the State Government in this behalf.";

(6) in section 14,-

(a) in sub-section (1) for the portion commencing with the words "shall, on conviction by a Magistrate" and ending with the words "five hundred rupees", the following shall be substituted, namely:-

"shall, on conviction by a Magistrate,-

(i) in respect of each such offence falling under clause (a) or sub-clause (ii) of clause (b), be liable to a fine which may extend to one thousand rupees;

(ii) in respect of an offence falling under sub-clause (i) of clause (b) be punished with imprisonment of either description for a term which may extend to one year and with fine.";

(b) after sub-section (1), the following sub-sections shall be inserted, namely:-

"(1-A) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (Central Act 2 of 1974), an offence falling under sub-clause (i) of clause (b) of sub-section (1) shall be cognizable.

(1-B) No court shall take cognizance of an offence falling under sub-clause (i) of clause (b) of sub-section (1), except upon complaint, in writing, made by any officer not below the rank of Deputy Commercial Tax Officer and authorised in this behalf by the State Government by general or special order."

(7) in section 15,-

(a) in clause (a), for the words "five hundred rupees or double the amount of the tax", the words "one thousand and five hundred rupees or thrice the amount of the tax" shall be substituted;

(b) in clause (b), for the words "five hundred rupees", the words "one thousand rupees" shall be substituted;

(8) after section 16, the following section shall be inserted, namely:-

"16-A. Power to amend Schedules.- (1) The State Government may, by notification, having due regard to the population including the floating population, annual income and such other matters as may be prescribed, amend any of the Schedules.

(2) Where a notification has been issued under sub-section (1), there shall, unless the notification is in the meantime rescinded, be introduced in the Legislature, as soon as may be, but in any case during the next session of the Legislature following the date of the issue of the notification, a Bill on behalf of the State Government, to give effect to the amendment specified in the notification, and the notification shall cease to have effect when such Bill becomes law, whether with or without modifications, but without prejudice to the validity of anything previously done thereunder:

Provided that if the notification under sub-section (1) is issued when the Legislature is in session, such a Bill shall be introduced in the Legislature during that session:

Provided further that where for any reason a Bill as aforesaid does not become law within six months from the date of its introduction in the Legislature, the notification shall cease to have effect on the expiration of the said period of six months.

(3) All references made in this Act to any of the Schedules shall be considered as relating to the Schedules as for the time being amended in exercise of the powers conferred by this section.";

(9) after section 20, the following Schedules shall be added, namely:-

Section 3

3.- The amendment made by this section has already been incorporated in the principal Act, viz., the Tamil Nadu Local Authorities Finance Act, 1961 (Tamil Nadu Act 52 of 1961).

Section 4. [Repeal]

4. [Repeal].- (1) The Tamil Nadu Entertainments Tax and Local Authorities Finance (Amendment) Ordinance, 1977 (Tamil Nadu Ordinance 5 of 1977), is hereby repealed.

(2) Notwithstanding such repeal anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act as if this Act had come into force on the 26th December, 1977.