Delhi Entertainments and Betting Tax (Amendment) Act, 2009 (14dec09) Complete Act - Bare Act

The following is published for general information :-

BILL NO. 11 OF 2009

THE DELHI ENTERTAINMENTS AND BETTING TAX (AMENDMENT) BILL, 2009

(As introduced In the Legislative Assembly of National Capital Territory of Delhi in 14-12-2009)

BILL NO. 11 OF 2009

THE DELHI ENTERTAINMENTS AND BETTING TAX (AMENDMENT) BILL, 2009

A Bill to amend the Delhi Entertainments and Betting Tax Act, 1996.

Be it enacted by the Legislative Assembly of the National Capital Territory of Delhi in the Sixtieth Year of the Republic of India as follows :-

1. Short title, extent and commencement:-

(1) This Act may be called the
Delhi
Entertainments and Betting Tax (Amendment) Act, 2009.

(2) It extends to the whole of the National Capital Territory of Delhi.

(3) It shall come into force on such date as the Government may, by notification in the Official Gazette, appoint.

2. Amendment of Section 2:-

In the Delhi Entertainments and Betting Tax Act, 1996 (Delhi Act No. 8 of 1997) (hereinafter referred to as "the Principal Act), in Section 2-

(i) for clause (a), the following clauses shall be substituted, namely: -

"(a) 'addressable system' means an electronic device or more than one electronic devices put in an integrated system through which television signals and value added services can be sent in encrypted or unencrypted form, which can be decoded by the device or devices at the premises of the subscriber within limits of the authorization made, on the choice and request of such subscriber, by the service provider to the subscriber;

(aa) 'admission to an entertainment' includes admission to any place in which the entertainment is held and in case of entertainment through cable service and direct to home (DTH) service with or without cable connection, each connection to a subscriber shall be deemed to be an admission for entertainment;";

(b) for clause (c), the following clause shall be substituted, namely:-

"(c) "assessing authority means the Entertainment and Betting Tax Officer and includes Additional Entertainment and Betting Tax Officer and Assistant Entertainment and Betting Tax Officer;;

(c) after clause (f), the following clauses shall be inserted, namely:-

"(fa) "broadcaster" means any person including an individual, group of persons, public or body.' corporate, firm or any organization or body, who or which is providing programming services and includes his or her authorized distribution agencies;";

"(fb) "cable operator* means any person who provides cable service through a cable television network or otherwise controls or is responsible for the management and operation of a cable television network;";

(d) after clause (h), the following clause shall be inserted, namely:-

"(ha) "direct-to-home (DTH) service* means distribution of multi-channel television and radio programmes and similar content by using a satellite system, by providing signals directly to subscribers` premises without passing through an intermediary or otherwise;";

(e) in clause (i), after the words` through cable service' occurring at the end, the words brackets and signs "and direct-to-home (DTH) service,' shall be inserted;

(f) after clause (k), the following clause shall be inserted, namely:-

"(ka) "multi-system operator (MSO)" means any person including an individual, group of persons, public or body corporate, firm or any other organization or body, who or which is engaged in the business of receiving television signals and value added services from a broadcaster or his authorized agencies and distributing the same or transmitting his own programming service including production and transmission of programmes and packages, directly to the multiple subscribers or through one or more cable operators and includes its authorized distribution agencies by whatever name called;;

(g) in clause (m) after sub-clause (v), the following sub-clause shall be inserted, namely:-

"(vi) any payment made by a person by way of contribution, subscription, installation or connection charges or any other charges collected in any manner whatsoever for entertainment through direct-to-home (DTH) broadcasting service for distribution of television signals and value added services with the aid of any type of addressable system, which connects a television set, computer system at a residential or non-residential place of subscribers` premises, directly to the satellite or otherwise;";

(h) in clause (o), after sub-clause (iii), the following sub-clause shall be inserted, namely:-

"(iv) having licence to provide direct-to-home ( DTH) service, by the Central Government under section 4 of the Indian Telegraph Act, 1885 (13 of 1885), and the Indian Wireless Telegraph Act, 1933 (17 of 1933) and also include service provider of cable television signals and value added services, registered or licensed under the Cable Television Network (Regulation) Act, 1995 (7 of 1995);";

(i) after clause (p), the following clauses shall be inserted, namely: -

"(pa) set top box means an apparatus, connected to a television set or computer system at a residential or non-residential place which receives decrypted television signals and radio services to the television set or computer set, which enables the viewers to tune into multi channel television or radio content;

"(pb) service provider includes any person licensed or registered under the Indian Telegraph Act, 1885 (1 3 of 1885), the Cable Television Networks (Regulation) Act, 1995 (70 of 1995), the Indian Wireless Telegraphy Act, 1933 (17 of 1933) and any other Act for providing, television and radio signals and is providing entertainment;";

(j) for clause (s), the following clause shall be substituted, namely: -

"(s) "subscriber means a person who receives the signals of television network and value added services from multi-system operator or from cable operator or from direct-to-home (DTH) broadcasting service at a place indicated by him to the service provider, without further transmitting it to any other person;

Explanation I:-

In case of hotels, each room or premises where signals of cable television network are received shall be treated as a subscriber;

Explanation II:-

In case of direct-to-home (DTH), every television set or computer set receiving the signals shall be treated as a subscriber."

3. Amendment of Section 3:-

In the principal Act, in section 3, in sub-section (2), after the words "Additional Entertainment and Betting Tax Officers" and before the word "Inspectors" the words "Assistant Entertainment and Betting Tax Officers," shall be inserted.

4. Amendment of Section 7:-

In the principal Act, in Section 7-

(a) for the shoulder heading, the following shoulder heading shall be substituted, namely:-"Tax on cable, video service and direct-to-home (DTH) Service.-'

(b) for sub-section (1), the following sub-section shall be substituted, namely:-

"(1) Subject to the provisions of this Act, there shall be levied and paid an entertainment tax on all payments for admission to an entertainment through a direct-to-home (DTH) or through a cable television network with addressable system or otherwise, other than entertainment to which Section 6 applies, at such rates not exceeding rupees six hundred for every subscriber for every year as the Government may, from time to time notify in this behalf which shall be collected by the proprietor and paid to the Government in the manner prescribed.".

5. Amendment of Section 8:-

In the principal Act, in section 8, in sub-section (2), after the words "video cinema and before the word "shall* the words and figure "or Direct-to-Home (DTH)" shall be inserted.

6. Insertion of New Section ISA:-

In the principal Act, after section 15, the following section shall be inserted, namely:-

15A. Power to summon witnesses and production of documents:-

(1) The assessing, appellate or revising authority shall, for securing the attendance or for production of any document for the purpose of this Act, have all the powers conferred on a Civil Court under the provisions of the Code of Civil Procedure, 1908 (5 of 1908) for the purpose of-

(a) summoning and enforcing the attendance of any person and examining him on oath or affirmation; and

(b) compelling the production of any document connected with the assessment proceedings.

(2) The authority referred to in sub-section (1) shall have powers to call for such information, particulars and records as he may require, from any person, including the broad-caster, cable operator, proprietor of direct-to-home, multi-system operator or the subscriber, for any purpose under this Act"

7. Substitution of New Section for Section 20:-

In the principal Act, for Section 20, the following section shall be substituted, namely:-

"20. Licence for book-maker:-

No person shall act as a book-maker unless he obtains a licence from the Commissioner in the form and manner prescribed after making payment of licence fee as notified by the Government from time to time.

8. Substitution of new section for Section 39:-

In the principal Act, for Section 39, the following section shall be substituted, namely:-

"39. Recovery of Tax:-

(1) The amount of any tax, interest, penalty or other amount due under any provision of this Act shall, without prejudice to any other mode of recovery available to the Government under any other law for the time being in force, be recoverable as arrears of land revenue.

(2) If the tax, interest, penalty or other amount due has not been deposited within the specified time, a recovery certificate to the Collector for recovery of the same shall be issued in such manner as may be prescribed.

(3) For the purposes of recovery of any amount recoverable as arrears of land revenue under this Act, the provisions of the Delhi Land Reforms Act, 1954 Delhi Act 8 of 1954), as to the recovery of arrears of land revenue shall, notwithstanding anything contained in that Act or in any other enactment, be deemed to be in force throughout Delhi and the provisions of the Revenue Recover Act, 1890 (1 of 1890) shall have effect accordingly.

(4) For the purposes of recovery of any amount recoverable as arrear of land revenue under this Act-

(a) the Deputy Entertainment Tax and Betting Tax Commissioner shall have and exercise all the powers and perform all the duties of the Deputy Commissioner under the Delhi Land Reforms Act, 1954 (Delhi Act 8 of 1954);

(b) the Entertainment Tax Officer and Additional Entertainment Tax Officer shall have and exercise all the powers and perform all the duties of the Revenue Assistant under the Delhi Land Reforms Act, 1954 (Delhi Act 8 of 1954);

(c) the Assistant Entertainment Tax Officer shall have and exercise all the powers and perform all the duties of Tehsildar under the Delhi Land Reforms Act, 1954 (Delhi Act 8 of 1954);

9. Insertion of new Section 39A:-

In the principal Act, after section 39 the following section shall be inserted, namely:- "39A. Special Mode of Recovery.- (1) Notwithstanding anything contained in any law or contract to the contrary, the Commissioner may, at any time or from time to time, by notice in writing, a copy of which shall be forwarded to the person at his last known address, require,-

(a) any person from whom any amount of money is due, or may become due, to the person (in this section called "the taxpayer") liable to pay tax, interest, penalty or any amount due under this Act, or

(b) any person who holds or may subsequently hold money for or on account of the taxpayer, to pay to the Commissioner, either forthwith upon the money becoming due or being held so much of the money as is sufficient to pay the amount due by the taxpayer in respect of the arrears of tax, interest, penalty or any other amount under this Act, or the .whole of the money when it is equal to or less than that amount.

(2) The Commissioner may amend or revoke any such notice or extend the time for making any payment in pursuance of the notice.

(3) Any person making any payment in compliance with a notice under this section shall be deemed to have made the payment under the authority of the taxpayer, and the receipt thereof by the Commissioner shall constitute a good and sufficient discharge of the liability of such persons to the extent of the amount specified in the receipt.

(4) Any person discharging any to the taxpayer after receipt of the notice referred to in this section, shall be personally liable to the Commissioner to the extent of the liability discharged or to the extent of the liability of the dealer for unpaid tax penalty and interest.

(5) Where a person to whom a notice under this section is sent proves to the satisfaction of the Commissioner that the sum demanded or any part thereof is not due to the taxpayer or that he does not hold any money" for or on account of the taxpayer, then, nothing contained in this section shall he deemed to require such person to pay any such sum or part thereof, as the case may be, to the Commissioner.

(6) Any amount of money which the aforesaid person is required to pay to the Commissioner, or for which he is personally liable to the Commissioner under this section shall, if it remains unpaid, be recoverable as if arrears of land revenue from the aforesaid person.

(7) The Commissioner may apply to the court in whose custody there is money belonging to the taxpayer for payment to him of the entire amount of such money or if it is more than the tax, interest and penalty, if any, due, an amount sufficient to discharge such tax, interest and the penalty."

10. Amendment of Section. 45:-

In the principal Act, in Section 45 in sub-section (2).

(a) for clause (c), the following clause shall be substituted, namely:-

"(c) procedure for giving prior information to the Commissioner for holding entertainment on which tax is leviable and for obtaining permission for holding entertainment by the proprietor of cable television network or direct-to-home (DTH) or video cinema hall;";

(b) after clause (d), the following clause shall be inserted, namely: -

"(da) prescribing the manner of payment of entertainment tax to the Government in respect of entertainments described in section 72;";

(c) for clause (1), the following clauses shall be substituted, namely:-

"(1) prescription of the form, manner and licence fee for obtaining book-makers licence;";

(d) after clause (q), the following clauses shall be inserted, namely:-

"(qa) prescribing the conditions for conducting special audit under section 45A;".

11. Insertion of new Section 45A:-

"In the principal Act, after Section 45, the following section shall be inserted, namely:-

"45A. Power of the Commissioner to issue direction for special audit:-

(1) If, at any stage of the proceedings under this Act, the Commissioner, having regard to the nature of the entertainment event and complexity of the transactions made by the proprietor of the entertainment event and the interest of the revenue, is of the opinion that it is necessary to do so, he may direct the Proprietor by a notice in writing to get his records including books of account, examined and audited by an Accountant or a panel of Accountants or any other professional or panel of professionals nominated by the Commissioner in this behalf and to furnish a report of such examination and audit in the format that he may specify, duty signed and verified by such Accountant or panel of Accountants or professional or panel of professionals and setting forth such particulars as may be prescribed.

(2) Every report under sub-section (1) shall be furnished by the Proprietor of the entertainment event to the Commissioner within such period as may be specified by the Commissioner:

Provided that the Commissioner may, on an application made in this behalf by the proprietor and for any good and sufficient reason, extend the said period by such further period as he thinks fit.

(3) The expenses of, and incidental to the examination and audit of records under sub section (1) (including the remuneration of the accountant or a panel of accountants or professional or panel of professionals) shall be paid by the proprietor as determined by the Commissioner and that determination shall be final and default in such payment shall be recoverable from the proprietor as tax and in the manner provided for the recovery of arrears of tax under this Act-

STATEMENT OF OBJECTS AND REASONS

The Delhi Entertainments and Betting Tax Act, 1996 Delhi Act No. 8 of 1997) only provides for taxing the services provided by Cable Operators. Direct to Home (DTH) services are not covered under the existing provisions. Subscribers base of DTH has rapidly increased during the past three years and is further expanding, thereby provide good resources generation opportunity. Hence, the amendment is proposed in the Act to bring DTH under the Tax net.

It is proposed to empower the Assessing Authorities appointed under the said Act to have all the powers conferred on a court under Code of Civil Procedure 1908 for the purpose of summoning and enforcing the attendance of any person and examining him on oath and compelling production of any document.

It is proposed to incorporate provision for levy of licence fee by the Government before granting a licence to book maker under section 20 of the Act. The provision of Special Mode of Recovery as also provided in the Delhi Value Added Tax Act, 2004 is being incorporated in the Act so as to expedite the recovery proceedings.

Further, provision of special audit as made available under the Delhi Value Added Tax Act, 2004 has also been proposed for proper examination of records in Connection with an entertainment, event.

The Bill seeks to achieve the aforesaid objectives.

MEMORANDUM REGARDING DELEGATED LEGISLATION

1. Clause 4 of the Bill confers on the Government the powers to make rules to prescribed the manner of payment of entertainment tax to the Government in respect of entertainments through Direct-to-Home (DTH) or Cable Television Network as described in sub-section (1) of Section 7 of the Act.

2. Clause 7 of the Bill confers on the Government the power to make rules to prescribe the form and manner for obtaining a licence from the Commissioner by a book-maker after making payment of licence fee, as provided under section 20 of the Act.

3. The matters in respect of which rules may be made are matters of administrative details and procedure and, as such, the delegation of legislative power is of normal character.

FINANCIAL MEMORANDUM

At present the Delhi Entertainment and Betting Tax Act, 1996 (Delhi Act No. 8 of 1997) is applicable for all entertainment programmes being held in the National Capital Territory of Delhi viz. cinema, cable TV, Horse racing and other miscellaneous entertainment programmes.

The proposed amendment shall bring DTH services under tax net which is likely to generate revenue to the tune of approximately Rs. Sixty lakh per month. The proposed amendment to charge licence fee from hook-makers is likely to generate Rs. 56.00 lakh as additional revenue per annum. It also proposes to amend certain provisions of the Act to make tax administration more efficient and effective and to plug the loophole for better tax compliance.

The Bill does not involve any additional financial assistance from the Central Government through substantive expenditure from the Consolidated Fund of the National Capital Territory of Delhi.