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Informist, Tuesday, Jul 30, 2024

 

NEW DELHI – The Supreme Court today ruled that no entertainment tax can be charged under the Tamil Nadu Entertainment Tax Act on online ticket booking charges for movies. The court upheld a Madras High Court order that the Tamil Nadu Entertainment Act could not impose a tax on internet services offered by cinema owners.

 

"So instead of going directly to the cinema theatre where I can get the ticket directly, I am buying it from my home, so that is the charge you are taking for your service. How will that come under entertainment tax?" Justice B.V. Nagarathna and Justice N. Kotiswar Singh observed. 

 

The top court dismissed the petitions filed by the state commercial tax department against PVR INOX Ltd, AGC Cinemas Pvt Ltd and Mayajaal Entertainment Ltd. "We are not inclined to interfere with the decision of the division bench of the Madras High Court," the apex court said.

 

The court was hearing petitions whether the online booking fees charged by cinema hall owners, besides the cost of tickets, were part of the taxable receipt by the cinema owner under the Tamil Nadu Entertainment Tax Act. 

 

Today, shares of PVR INOX Ltd ended 0.3% lower at 1,518.75 rupees on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Saji George Titus

 

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