Act Info:
1[4A. Tax on cinematograph shows in certain places
(1) In lieu of entertainment tax2[x x x] payable under sub-section (1) of3[Sections 3 and 3-A]2[x x x], in the case of cinematograph shows held in cinema theatres situated within the limits of a local authority4[(but excluding a cantonment board)] whose population does not exceed seventy five thousand specified in column (2) of the table below, the proprietor may, at his option and subject to such conditions, as may be prescribed, pay the amount of tax as specified in column (3) thereof,-
5[TABLE
| Sl. No. | Local authority population of which | Rate of tax |
| 1 | 2 | 3 |
| (a) | does not exceed twenty-five thousand | 6[Five percent] of the gross collection capacity. |
| (b) | exceeds twenty-five thousand but does not exceed fifty thousand | 6[Ten per cent] of the gross collection capacity. |
| (c) | exceeds fifty thousand but does not exceed seventy five thousand | 6[Fifteen per cent] of the gross collection capacity.] |
Explanation.- For the purpose of this section, gross collection capacity shall mean the notional aggregate of all payments for admission the proprietor would realise per show if all the seats or accommodation as determined by the licensing authority under the Karnataka Cinemas (Regulation) Act, 1964, in respect of the place of entertainment are occupied and collected at the maximum rate of payment for admission for each class as determined in this behalf by the prescribed authority:
Provided that in the case of cinematograph show of a Kannada, Kodava, Konkani or Tulu Film which has secured after the first day of April, 1981, a best feature film award granted by the Central Government or any State Government or an internationally recognised award notified by the State Government, no tax shall be payable under this sub-section, for a period of one year from such date as may be specified by the State Government:
Provided further that in the case of cinematograph show of a film other than Kannada, Kodava, Konkani or Tulu Film which has secured after the first day of April, 1981, a best feature film award granted by the Central Government or any State Government or an internationally recognised award notified by the State Government, no tax shall be payable under this sub-section, for a period of six months from such date as may be specified by the State Government:
Provided also that,-
(i) in the case of a cinematograph show of a Kannada film which is not a remake of film of other language or a dubbed version of a film of other language or a Kodava, Konakani or Tulu film produced in the State of Karnataka, the rates of entertainments tax payable shall be nil.
(ii) in the case of a cinematograph show of a Kannada, Kodava, Konkani or Tulu film produced outside the State of Karnataka and which has secured a Censor Certificate issued by the Central Board of Film Certification on or before the thirty-first day of December, 1987, the rates of entertainments tax payable shall be nil:
Provided also that, in case of a cinematograph show of a Kannada film which is a remake of a film of any other language,-
(i) having been remade in the State of Karnataka after a period of ten years from the date of issue of a certificate by the Central Board of Film Certification to such other language film; or
(ii) which has secured a best feature film award, granted by the Central Government or any State Government or has figured in the Indian Panorama of International Films Festival and has been remade in the State of Karnataka:
the rate of entertainments tax payable shall be nil.
(2) After the determination of the gross collection capacity of a cinema theatre, no change or modification either in the number of seats or accommodation or in the rates of payment for admission to such theatre shall be made, unless the proprietor has given fifteen days notice thereof to the prescribed authority and, until the gross collection capacity is redetermined, the proprietor shall pay the tax as previously fixed.
(3) No proprietor of a cinema theatre to which sub-section (1) is applicable, shall collect or cause to be collected any amount either by way of tax or otherwise in excess of the payment for admission taken into consideration for calculating the gross collection capacity of such theatre.
(4) (a) Notwithstanding anything in this section, where a cinematograph film is allowed exemption from payment of tax under sub-section (1), the rates of payment for admission shall be reduced in respect of each admission to the extent of the tax exempted in respect of such payment. Where a proprietor does not reduce the rates of payment for admission, he shall, in addition to any other penalty under this Act, be liable to pay tax as if no exemption from the payment of tax was made under sub-section (1).
(b) Notwithstanding the reduction in the rates of payment of admission under clause (a), the gross collection capacity for the purpose of payment of tax under sub-section (1) shall remain unaltered.
(5) It shall be presumed that the proprietor of an entertainment has conducted all the shows permitted to be conducted by him under the Karnataka Cinemas (Regulation) Act, 1964, unless he produces along with his return, a certificate in the prescribed form, obtained from the prescribed authority that any such show has not been conducted, and for this purpose the prescribed authority shall issue the certificate, after such enquiry as it deems fit, within ten days from the date of receipt of the application in this behalf.
(6) 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.]
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1. Inserted by Act 16 of 1977 and substituted by Act 7 of 1997 w.e.f. 1.4.1997.
2. Omitted by Act 18 of 1997 w.e.f. 20.9.1997.
3. Substituted by Act 7 of 2003 w.e.f. 1.4.2003.
4. Inserted by Act 5 of 2001 w.e.f. 1.4.2001.
5. Substituted by Act 18 of 1997 w.e.f. 20.9.1997.
6. Substituted by Act 11 of 2005 w.e.f. 1.4.2005.