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ENT2006-01

NOTIFICATION

NO. FD 54 CEX 2005 Bangalore, dated: 09.06.2006

The draft of the following rules further to amend the Karnataka Entertainments Tax Rules, 1959 which the Government of Karnataka proposes to make in exercise of the powers conferred by Section 18 of the Karnataka Entertainments Tax Act, 1958 (Karnataka Act 30 of 1958) is hereby published as required by sub-section (1) of Section 18 of the said Act for the information of all persons likely to be affected thereby and notice is hereby given that the said draft will be taken into consideration after fifteen days from the date of its publication in the Official Gazette.

Any objection or suggestion, which may be received by the State Government from any person with respect to the said draft before the expiry of the period specified above, will be considered by the State Government. Objections or suggestions may be addressed to the Principal Secretary to the Government, Finance Department, Vidhana Soudha, Bangalore-560 001

DRAFT RULES

1. Title and commencement.-

    (1) These rules may be called the Karnataka Entertainments Tax (Amendment) Rules, 2006.
    (2) They shall be deemed to have come into force with effect from the first day of April, 2006.

2. Amendment of rule 3.-

In the Karnataka Entertainments Tax Rules, 1959 (hereinafter referred to as the said rules), in rule 3,-

(1) clause (b) shall be omitted;

(2) for clause (e), the following shall be substituted, namely:-

"(e) "Joint Commissioner" means the Joint Commissioner of Commercial Taxes appointed under the Karnataka Sales Tax Act, 1957;";

(3) in clause (f), for the word and figure "Section 3", the words and figures "sections 3, 3-A, 4-A, 4-B, 4-C, 4-D, 4-E, 4-F or 4-G" shall be substituted;

(4) in clause (g), for the words "Assistant Commercial Tax Officer", the words "Commercial Tax Officer" shall be substituted;

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

"(i-1) "Service charges" means the amount collected by a proprietor as service charges under section 4-AA of the Act.".

3. Amendment of rule 17-A.- In rule 17-A of the said rules,-

(1) in sub-rule (1), after the word and figures "Form XXIV", the words and figures " and a Direct To Home service provider shall submit such return in Form XXIV-1" shall be inserted;

(2) in sub-rule (2), after the word "Operator", the words " or Direct To Home service provider" shall be inserted.

4. Amendment of rule 18.- In rule 18 of the said rules, in sub-rule (2), in the provisos, after the word "Operator" occurring in two places, the words " or Direct To Home service provider" shall be inserted;

5. Amendment of rule 27.- In rule 27 of the said rules, in sub-rule (4), in the second proviso, after the word, figures and letter "Form II-D", the words, figures and letter "and in the case of a Direct To Home service provider such register shall be in Form II-E" shall be inserted.

6. Amendment of rule 29-E.- In rule 29-E of the said rules, after the word "Operator" wherever it occurs, the words "or Direct To Home service provider" shall be inserted.

7. Amendment of rule 41-F.- In rule 41-F of the said rules,-

(1) in sub-rule (4), the following proviso shall be inserted, namely:-

" Provided that every permit holder claiming exemption from payment of tax under third proviso to section 4-C shall furnish along with monthly return a declaration in Form 52 issued by the Multi System Operator who provided television signals to him.";

(2) in sub-rule (5), after the words "tax payable", the words "or declaration in Form 52 in support of the exemption claimed from payment of tax" shall be inserted;

(3) after sub-rule (6), the following sub-rule shall be inserted, namely:-

"(7)(a) The declaration in Form 52 shall be obtained by the Multi System Operator from his jurisdictional Entertainments Tax Officer, on payment of fifty rupees per book or one rupee per form, and the Entertainments Tax Officer may refuse issue of such declaration to a Multi System Operator who has defaulted in payment of tax or any other amount due under the Act.

(b) The declaration in Form 52 shall be issued by the Multi System Operator to a cable television operator who is receiving television signals from him, within five days from the end of every month.

(c) Every such form so obtained by the Multi System Operator shall be kept by him in safe custody and he shall be personally responsible for the loss, destruction or theft of any such form or the loss of revenue to the Government, resulting directly or indirectly from such loss, destruction or theft.

(d) Every Multi System Operator issuing declaration in Form 52 shall maintain for each year separately an account showing the declarations issued, in Form 53.

(e) If any Form 52 is lost, destroyed or stolen, the Multi System Operator shall report the fact to the Entertainments Tax Officer within a week of such loss, destruction or theft and shall make appropriate entries in the register maintained in Form 52 and take such other steps including the furnishing of an indemnity bond and issue of public notice of the loss, destruction or theft as the Entertainments Tax Officer may direct.

(f) Any Multi System Operator who has obtained Form 52 shall not either directly or any other person, transfer the same to another person.

(g) As soon as a report is received from the Multi System Operator regarding the loss, destruction or theft of Form 52, the Entertainments Tax Officer shall, within ten days, report to the jurisdictional Joint Commissioner of Commercial Taxes and also to take action to notify such loss, destruction or theft in the Official Gazette.

(h) The register maintained in Form 53 along with Form 52 shall be open for inspection by the Entertainments Tax Officer or any other officer empowered under Section 10.

(i) Any un used declaration form held in stock with a Multi System Operator shall be surrendered to the Entertainments Tax Officer on discontinuance of business by the Multi System Operator."

8. Amendment of rule 41-G.- In rule 41-G of the said rules,-

(1)for sub-rule (1) including the proviso, the following sub-rule shall be deemed to have been substituted with effect from the first day of October, 2004 and shall be omitted from the first day of April, 2006, namely:-

"(1) Every proprietor who opts to pay tax under Section 4-D shall, seven days prior to the date on which he commences to provide entertainment through antennae or cable television or both, submit an application in Form VI-I along with an application for grant of permit for payment of tax under Section 4-C to the Entertainment Tax Officer of the area concerned for issue of permission in Form VI-K.";

(2) for sub-rule (1) as so omitted, the following sub-rule shall be substituted, namely:-

"(1) Every proprietor who is providing entertainment to not more than five hundred connection holders and who opts to pay tax under Section 4-D shall, seven days prior to the date on which he commences to provide entertainment through antennae or cable television or both, submit an application in Form VI-I along with an application for grant of permit for payment of tax under Section 4-C to the Entertainment Tax Officer of the area concerned for issue of permission in Form VI-K.";

(3)after sub-rule (3), the following provisos shall be inserted, namely:-

"Provided that such amount of Entertainments Tax specified shall not be payable by a proprietor, if he is receiving television signals from a Multi System Operator paying tax under section 4-G, subject to furnishing of a declaration in Form 52 issued by such Multi System Operator, to the Entertainments Tax Officer within tenth day from the end of every month.

Provided further that the Entertainments Tax Officer may condone the delay of a period not exceeding fifteen days, in furnishing of a declaration in Form 52 by a proprietor for good and sufficient reasons."

9. Amendment of rule 45-A.- In rule 45-A of the said rules, in sub-rule (1), in clause (ix), in sub-clause (b), for the words "Deputy Commissioner", the words "Joint Commissioner" shall be substituted.

10. Amendment of rule 50.- In rule 50 of the said rules, for the words "Deputy Commissioner", the words "Joint Commissioner" shall be substituted.

11. Amendment of rule 52.- In rule 52 of the said rules, for the words "Assistant Commercial Tax Officer", the words "Commercial Tax Officer" shall be substituted.

12. Insertion of new Part XI.- After the entries relating to Part X of the said rules, the following part and entries shall be inserted, namely:-

"
Part XI

Collection of service charges and filing of statements, etc.-

"59. Procedure for collection of service charges and filing of returns.- (1) The proprietor of a cinema theatre who collects service charges as specified under section 4-AA of the Act, shall keep a register of service charges collected for each show in Form-II.

(2) The amount of service charges collected by a proprietor in a quarter shall be utilized for the improvement of civic amenities in the theatre and also for maintenance of the theatre, within three months from the end of such quarter ending on 31st March, 30th June, 30th September and 31st December of every year.

(3) The proprietor shall submit a quarterly statement to the Entertainments Tax Officer in form II-BB on or before the tenth day of the subsequent month after end of each quarter, giving the particulars of the amount of service charges collected during the previous quarter and the amount utilized during the quarter under report.

(4) Where any amount of service charges collected during the previous quarter remains un-utilized at the end of the quarter under report, such amount shall be liable for tax as if the un-utilized amount of service charges forms part of the rate of admission under section 3 of the Act and all the provisions relating to payment of tax, etc., shall apply mutatis mutandis to such amounts.

(5) The proprietor shall declare the particulars of amount of un-utilized service charges and the amount of taxes payable on the said amount, in the quarterly statement and such statement shall be filed along with proof of payment of taxes payable.

(6) The Entertainments Tax Officer shall verify the correctness of the statement filed by a proprietor by calling on him to produce the accounts and other documents maintained within one month from the date of receipt of the quarterly return and pass an order demanding tax on the un-utilized amounts collected as service charges.

(7) The proprietor of a cinema theatre who has commenced collection of service charges before the date of commencement of these rules shall submit to his Entertainments Tax Officer a statement in Form-II BB for the entire period prior to such commencement, within thirty days from date of commencement of these rules and the proprietor who commences collection of service charges after the date of commencement of these rules, shall submit the statement in Form II-B to the Entertainments Tax Officer on or before the tenth day subsequent to any month or quarter as the case may be".

13. Amendment of Form-II.- In Form-II of the said rules, in the Daily collection Report, after column (10) relating to additional tax collected, the following column shall be inserted, namely:-

Service Charges Collected
(11)
14. Insertion of Form II BB.- After form II B of the said rules, the following new form shall be inserted, namely:-

"FORM-II BB

(See rule 59)

Statement of collection and utilization of service charges

For the quarter ending
.........

Name and Address of the Theatre :

Class of Theatre : AC/Non-AC

For the previous quarter ending ….
Service Charges collected Service charges utilized Amount remaining un-utilized at the end of quarter
1) (2) (3)
Rs. Rs. Rs.
Quarter under report
Month No. of tickets sold Service Charges collected Service charges collected in the current quarter and utilized in the current quarter Amount remaining un-utilized at the end of quarter[Col.(6)–Col.(7)] Un-utilized Service charges collected in the previous quarter [as in column (3)]and utilized in the current quarter Amount remaining un-utilized at the end of quarter [Col.(3)–Col.(9)]
(4) (5) (6) (7) (8) (9) (10)

1

2

3

Total

 

 

 

 

 

 

 

Rs.

 

 

 

Rs.

 

 

 

Rs.

   

Tax payable on amount mentioned in Col.9 above at % : Rs.

Payment details: Cheque/DD/PO No., date and Bank

DECLARATION

I _____________ (name) declare that to the best of my knowledge and belief the information furnished in the above statement is true and complete.

Place:

Date: Signature and status."


15. Insertion of Form II-E.- After Form II-D of the said rules, the following new form shall be inserted, namely:-

FORM II-E

[See Rule 27(4)]

Register of receipts for the month of .....20..

1 Name and Address of the Direct To Home service provider 
2 Total number of connections 
3 Amount receivable in the month from the subscribers  
4 Amount received in the month from the subscribers 
5 Total tax payable in the month  
6 Total tax paid with particulars 

Place:_________________; Signature

Date: ____________;"(Proprietor/Partner/Authorised Signatory)."

16. Amendment of form IV-A.- In Form IV-A of the said rules, after the words and letters "Entertainments Tax and Additional Tax Rs." in the two places where they occur, the words and letters "Service charges Rs." shall be inserted.

17. Amendment of Form XV.- In Form XV of the said rules, for the words "Assistant Commissioner" in the two places they occur, the words "Joint Commissioner" shall be substituted.

18. Insertion of Form XXIV-1.- After Form XXIV of the said rules, the following new form shall be inserted, namely:-

"FORM XXIV-1"

[See Rule 17-A(1)]

Return of receipts for the month of __ - __ 20__.

Registration No.......

To

The Entertainments Tax Officer,

........

I, ......... Son of ......Proprietor, a Direct To Home service provider, providing transmission of programme and packages from .......(place of entertainment) furnish the following particulars for the month of..... and enclose a crossed cheque / demand draft / treasury receipt bearing No. ....... dated ..... for an amount of Rs .......(Rupees..... only) towards the payment of tax due.-

1 Name and Address of the Direct To Home service provider 
2 Total number of connections 
3 Amount receivable in the month from the subscribers  
4 Amount received in the month from the subscribers 
5 Total tax payable in the month  
6 Total tax paid with particulars  

Place:_________ Signature

Date: __________;(Proprietor/Partner/Authorised Signatory)."

19. Insertion of Forms 52 and 53.- After Form 52 of the said rules, the following new forms shall be inserted, namely:-

"Form 52"

[See Rule 41-F(4)]

Declaration to be issued by a Multi System Operator

Sl.No.

Office of issue:

Name & Address of the Multi

System Operator to whom issued:

Date of issue: _______________;Seal of the Entertainments Tax Officer

(To be filled by the Multi System Operator)

To:

........ (Name & Address of the Cable TV operator);

I/We ......(Address) being a Multi System Operator have distributed satellite television signals to you during the month of...........for which you have paid/have to pay Rs. ....... and we shall pay tax under section 4-G for such month.

 

Place: _____________;Signature

Date: _________; Name and status of the person

signing this declaration.

FORM 53

[See Rule 41-F(7)]

Register of declaration in Form 52

Sl. No. Sl. No. of the declaration received from ETO Date of receipt Date of issue Name & Address of the Cable TV Operator to whom issued Month for which issued Remarks
(1) (2) (3) (4) (5) (6) (7)
 
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