Services related to entertainment event and amusement facility
Entry to Entertainment Events and Access to Amusement facility services and taxability under service tax
Entry to Entertainment event and access to amusement facility services have been brought in ‘negative list of services’ under service tax law by central government.
‘Entertainment event’ has been defined in section 65B of the Act ‘as an event or a performance which is intended to provide recreation, pastime, fun or enjoyment, such as exhibition of cinematographic films, circus, concerts, sporting events, fairs, pageants, award functions, dance performances, musical performances, theatrical performances including cultural programs, drama, ballets or any such event or programme’.
‘Amusement facility’ has been defined in the Act as ‘a facility where fun or recreation is provided by means of rides, gaming devices or bowling alleys in amusement parks, amusement arcades, water parks, theme parks or such other places but does not include a place within such facility where other services are provided’.
Some clarification regarding the entertainment event or amusement facility
If a cultural programme, drama or a ballet is held in an open garden and not in a theatre then also it would be qualify as an entertainment event because The words used in the definition are ‘theatrical performances’ and not ‘performances in theatres’. A cultural programme, drama or a ballet preformed in the open does not cease to be a theatrical performance provided it is performed in the manner it is performed in a theatre, i.e. before an audience.
A standalone amusement ride in a mall is also a facility in which fun or recreation is provided by means of a ride. Access to such amusement ride on payment of charges would be covered in the negative list.
Entry to video parlors exhibiting movies played on a DVD player and displayed through a TV screen is a exhibition of cinematographic film and such exhibition are covered under negative list.
A club does not fall in the definition of an amusement facility so membership of a club does not qualify as access to an amusement facility.
Auxiliary services provided by a person, like an event manager, for organizing an entertainment event or by an entertainer for providing the entertainment to an entertainment event organizer are not covered in negative list entry.