Section 2

Amendment status not verified — confirm the current text below against the official source.

The Committee constituted under the proviso to subsection (2) of Section 3 of the Mysore State Legislature (Delegation of Powers) Act, 1971 (23 of 1971), has been consulted before enactment of this measure as a President’s Act. (Obtained from Presidents Act 14 of 1971.) V Amending Act 4 of 1973.— President’s Act 14 of 1971, 16 of 1971, 17 of 1971 and 18 of 1971 had been enacted to raise additional resources for the relief of Bangla Desh Refugees. They expire on 24th March 1973. It is proposed that while the additional levies for the relief of Bangla Desh Refugees may cease, the levies may be retained till 31st March 1974 to raise additional resources to meet the cost of ‘People’s Housing Programme’ to be undertaken by the State Government. Hence this Bill. (Obtained from L.A. Bill No.16 of 1973) VI Entertainments Tax [1958: KAR. ACT 30 742 Amending Act 15 of 1974.— It is proposed to raise the rates of “Surcharge” and “Show Tax” in order to augment the revenues of the State. Hence this Bill. (Obtained from L.A. Bill No.14 of 1974) VII Amending Act 36 of 1976.—With a view to augment the revenues of the State, it is proposed to levy an Additional Tax on entertainments on the value of tickets (inclusive of Entertainment Tax and Surcharge). It is further proposed, in order to effectively check evasion to increase the fines leviable under the Act and to provide for imprisonment as an alternative penalty. It is also proposed for the same reason to amend the Karnataka Cinemas Regulation Act to enable revocation or suspension of the cinema licence even when offences under the Act are compounded. Incidental amendments providing for rounding off the tax to the nearest multiple of five paise, refund of tax in case of power failure or mechanical breakdown etc., are also proposed to be made. Hence this Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 30th March 1976, as No. 1744, p. 8.) VIII Amending Act 16 of 1977.— At present, entertainment tax is levied on each payment for admission to an entertainment. In addition, surcharge and additional tax are levied on the same basis. An additional tax on cinematograph shows is also levied at prescribed rates per show. In view of the increasing number of complaints about the large scale evasion of entertainment tax especially by the proprietors of Cinema theatres in mofussil places, and in order to check such evasion, it is proposed to introduce a revised scheme of levy of entertainment tax in lumpsum on the basis of shows held in cinema theatres situated in places having less than 10,000 population. The proposed rate of tax per show is 12 per cent of the ‘Gross Collection Capacity’ (GCC), which is a notional sum representing the payments for admission to a show if all aggregate of all the seats in the cinema theatre are occupied. 1958: KAR. ACT 30] Entertainments Tax 743 Opportunity is also taken to make some minor amendments to overcome difficulties experienced in implementing the Act. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 1st April 1977, as No, 259, p. 6.) IX Amending Act 3 of 1979.—Section 9 (3) (b) of the Karnataka Entertainments Tax Act, 1958 prescribes that arrears of sums due under the Act may be recovered inter alia, by a Magistrate on application to him, as if they were a fine imposed by him. In the case reported in 28 STC at page 492, the High Court of Karnataka has held that the Magistrate is incompetent to recover sums which are in excess of his pecuniary jurisdiction specified in the Code of Criminal Procedure. To overcome the effect of the said decision of the High Court it is considered necessary to amend Section 9 (3) (b) to make it clear that a Magistrate can recover any amount of tax or amount due, notwithstanding anything contained in the Code of Criminal Procedure. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 9th August 1978, as No. 1127. p. 3. X Amending Act 21 of 1979.— In order to augment the revenues of the State it is proposed to second taxation and other laws. Opportunity is taken to make some other amendments also. Hence this Bill. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 27-3- 1979 as No. 259). XI Amending Act 25 of 1979.—In order to augment the revenues of the State, the Karnataka Taxation and Certain Other Laws (Amendment) Act, 1979, has been brought into force. According to the said Act, the tax has been increased by hundred per cent on Films which are granted ‘A’ certificate. Several representations have been received Entertainments Tax [1958: KAR. ACT 30 744 to reduce the same. Government propose to retain the power to make a reduction in the tax payable on ‘A’ Certificate Films. It is also proposed to amend section 7 of the Karnataka Entertainments Tax Act, 1958, so as to provide exemption for Children’s Film as it is an ‘International Children’s Year’. Hence this Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 19th April 1979, as No. 355, p. 5.) XII Amending Act 14 of 1980.—To augment the revenue of the State and to further rationalise the taxation structure, it is proposed to make certain amendments to the Karnataka Entertainments Tax Act, 1958, the Karnataka Forest Act, 1963 and the Karnataka Sales Tax Act, 1957. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 14th March 1980, as No. 192, p. 5.) XIII Amending Act 26 of 1980.—Under the provisions of the Karnataka Entertainments Tax Act 1958 (Karnataka Act 30 of 1958), the entertainments tax payable in respect of the films for which ‘A’ certificates are granted by the Board of Film Censors for restricted exhibition is twice the tax payable in other cases. It is now felt that the tax payable for such films should be the same as that normally paid for other films. The present Bill is intended to achieve this object. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 18th July 1980, as No. 567, p. 3.) XIV Amending Act 5 of 1981.—The present Bill is intended to give effect to the pronouncements made in the Budget Speech for the year 1981-82. In view of the proposed general reduction in the rate of tax applicable to Kannada, Konkani and Telugu Films produced in the State and with a view to safe-guarding Government revenue, certain provisions of the Law relating to grant of exemptions from payment of tax. Films on the basis of their language, theme or attitude value, etc., are now proposed to be modified. However grant of exemptions to Films receiving National or State Awards would be continued under the existing provisions of the Act. The provision in the existing Act relating rounding off of tax liability is modified in the interest of State revenue. 1958: KAR. ACT 30] Entertainments Tax 745 (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 26th March 1981, as No.197, p. 4.) XV Amending Act 13 of 1982.—In the budget speech for the year 1982-83, the Hon’ble Minister for Finance and Tourism, has indicated several proposal in order to augment the revenue of the State. This Bill seeks to give effect to the said proposals. Opportunity is taken to make some other minor amendments. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 27th March 1982, as No. 228, p. 31.) XVI Amending Act 2 of 1983.—Under the scheme of compulsory composition in section 4A of the Karnataka Entertainments Tax Act, 1958 (Karnataka Act No. 30 of 1958) as applicable to the cinematograph shows held in cinema theatres situated in local authorities with a population exceeding 15000 and less than 25000, as is payable either at 25 per cent of the gross collection capacity or at 20 per cent of the gross collection capacity on the maximum number of shows per day. It is not permissible to pay the tax in respect of such theatres in accordance with sections 3 and 3A of the Act. It was found that this scheme imposed very heavy tax burden on such theatres and some relief was necessary. It is therefore proposed to amend section 4A and provide for a scheme of composition for such theatres under which option is given to the proprietors of such theatres to pay either entertainments tax and surcharge under sections 3 and 3A or entertainments tax at 20 per cent of the gross collection capacity on the maximum number of permitted shows. In order to remove difficulties in the determination of gross collection capacity of drive-in-theatres for levying entertainments tax it is proposed to remove such theatres from the scheme of composition under section 4A. The incentive by way of reduction of 50 per cent of the entertainments tax given to Kannada, Kodava, Konkani and Tulu language films is now confined only to such films produced in the State of Karnataka. With a view to further encourage the development of films in the above regional languages it is now proposed to remove the said restriction by amending sections 3C and 4A. An Ordinance was promulgated to bring some of the provisions aforementioned immediately into force. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 26th November 1982, as No. 824, p. 56.) XVII Entertainments Tax [1958: KAR. ACT 30 746 Amending Act 9 of 1983.—According to the existing provisions of the Karnataka Entertainments Tax Act, 1958, levy of tax is restricted only to the two types of entertainments namely cinematograph shows and horse races. In the Budget speech for the year 1983-84, it has been indicated that the levy of entertainments tax shall be extended to certain selected games as well, but at concessional rates. The Bill seeks to implement these pronouncements in the Budget speech. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 29th March 1983, as No. 204, p. 53.) XVIII Amending Act 9 of 1984.—In the Budget Speech for the year 1984-85, The Hon’ble Chief Minister has proposed to withdraw the levy of Entertainments Tax on sports and also to provide for the passing of benefit of exemption or reduction of entertainments tax to the cinegoers in respect of theatres which are covered by composition scheme. The Karnataka Taxation Review Committee had recommended prescribing a minimum penalty for evasion of taxes. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 22nd March 1984, as No. 180, p. 50.) XIX Amending Act 3 of 1985.—The proposed legislation is for the purpose of making amendments to certain definitions under the Act with a view to making the levy of tax effective; for liberalising exemptions in favour of award winning films, educational films and children films. The proposed legislation also seeks to extend the composition Scheme to places upto a population of one lakh and also to extend the scheme to entertainment through video shows. It is also proposed to rationalise and streamline the existing provisions. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 22nd September 1983, as No. 836, p. 59.) XX Amending Act 22 of 1985.—Consequent upon the presentation of the budget for the year 1985-86 the following amendments to the Karnataka Entertainments Tax Act, 1958 become necessary. Clause 2 provides for amendment of section 3C to limit the concession now given to films produced in the regional languages outside the State for a period or 1958: KAR. ACT 30] Entertainments Tax 747 one year from 1-1-1986 and continue such concession to such films produced within the State. Clause 3 is to prohibit the proprietors of cinema theatres from collecting show tax from the persons admitted to the cinema. Clause 4(3) is to plug the evasion of tax by the proprietors of cinema theatres paying tax under section 4A. In respect of Video Shows, the tax is increased from Rs. 100 per month to Rs. 1,000 per month. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 1st August 1985, as No. 416, p. 47.) XXI Amending Act 3 of 1987.— According to clause (b) of sub-section (1) of section 3C of the Karnataka Entertainment Tax Act, 1958 in the case of a cinematograph show of a Kannada, Kodava, Konkani or Tulu film produced outside the State of Karnataka the rates of entertainment tax payable shall be one half of the rates specified therein for a period of six months from the date of first release of such film in the State of Karnataka, but not beyond 31st December 1986. It is proposed to extend the date from 31st December 1986 to 31st December 1987. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 4th February 1987, as No. 98, p. 67.) XXII Amending Act 15 of 1987.—To give effect to the proposals made in the budget speech it is proposed to amend the Karnataka Entertainments Tax Act, 1958. Opportunity is taken to make a consequent amendment to section 4A also. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 27th March 1987, as No. 244, p. 77.) XXIII Amending Act 17 of 1987.—To give effect to the announcement made by the Hon’ble Chief Minister on the floor of the Assembly on 27th March 1987, it is proposed to increase the rate of show tax in lieu of exemption of tax on leasing of feature films under Karnataka Sales Tax Act, 1957. Hence the Bill. Entertainments Tax [1958: KAR. ACT 30 748 (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 3rd April 1987, as No. 285, p. 65.) XXIV Amending Act 31 of 1987.—The definition of “local authority” appearing in clause (g) of section 2 of the Karnataka Entertainments Tax Act, 1958 includes a town panchayat or a village panchayat. After coming into force of the Karnataka Zilla Parishads, Taluk Panchayat Samithis, Mandal Panchayats and Nyaya Panchayats Act, 1983, the town panchayats and village panchayats are no more in existence and in their place Mandal Panchayats are constituted. Therefore, it is necessary to amend clause (g) to substitute the expression “Mandal Panchayat” in place of “town panchayats or Village panchayat”. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 2nd September 1987, as No. 573, p. 69.) XXV Amending Act 2 of 1988.—With a view to give some relief to the exhibitors of Kannada films from the enhancement of Show Tax, it is proposed to amend the Karnataka Entertainments Tax Act, 1958. As the matter was urgent and the Karnataka Legislative Council was not in Session, the Karnataka Entertainments Tax (Amendment) Ordinance, 1987 (Kannada Ordinance 7 of 1987) was promulgated. This Bill seeks to replace the said Ordinance. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 23rd January 1988, as No. 54, p. 62.) XXVI Amending Act 17 of 1988.—While a film in Kannada, Kodava, Konkani or Tulu language has to secure a “best feature film award” for exemption from payment of entertainments tax, a film in any other language has to secure only “an award” for exemption from payment of Entertainments Tax. It is proposed to set right the anomaly in the condition necessary for grant of exemption from payment of entertainments tax by requiring films in other languages also to secure “a best feature film award” for grant of exemption from payment of Entertainments Tax. With a view to provide some relief to films other than Kannada, Kodava, Konkani or Tulu languages, it is proposed to reduce the show tax. Hence the Bill. 1958: KAR. ACT 30] Entertainments Tax 749 (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 2nd April 1988, as No. 201, p. 3.) XXVII Amending Act 20 of 1989.—It is proposed to amend the Karnataka Entertainments Tax Act, 1958 (Karnataka Act 30 of 1958),— (i) to empower the State Government or the Commissioner to issue orders, instructions and directions to the subordinate officers for the effective implementation of the provisions of the Act; and (ii) to empower the Commissioner to transfer the powers conferred on an entertainments Tax Officer in respect of any specified place of Entertainments to any other Entertainments Tax Officer. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 27th March 1989, as No. 167, p. 74.) XXVIII Amending Act 7 of 1990.—To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Karnataka Entertainments Tax Act, 1958. Opportunity is also taken to rationalise certain provisions of the said Act. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 29th March 1990, as No. 162, p. 71.) XXIX Amending Act 6 of 1992.—After examining the representation made by the Karnataka Film Chamber of Commerce, it was considered necessary to extend 50% concession in Entertainment Tax to all Kannada, Kodava, Konkani or Tulu films censored before 31-12-1987, irrespective of whether the film has been produced within Karnataka or outside, and without any time limit. Accordingly, the Karnataka Entertainment Tax (Amendment) Ordinance, 1991 (Karnataka Ordinance No. 12 of 1991) was promulgated. This Bill seeks to replace the said Ordinance. Opportunity is also taken to amend Section 17 to provide for payment of compensation to the local authorities out of the proceeds of the surcharge collected during any year. Hence the Bill. Entertainments Tax [1958: KAR. ACT 30 750 (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 30th March 1992, as No. 199, p. 51.) XXX Amending Act 5 of 1993.—Consequent to the re-designation of posts in the Commercial Tax Department, it has become necessary to make suitable amendments in the relevant Taxation Laws. The full bench of our High Court in Shah Wallace case while overruling a Division Bench judgement of our High Court in Janardhanacharya’s case had held that the notifications issued under section 8A of the Karnataka Sales Tax Act, 1957 become inoperative when the relevant provisions of the Act are subsequently amended by way of insertion of any entry relating to the class of goods to which exemptions were given by the notifications. Therefore, it was considered necessary to suitably amend the said Act, to save the notifications already issued. As the matter was urgent and both the Houses were not in session, the amendments were carried-out by promulgation of the Karnataka Taxation Laws (Amendment) Ordinance, 1992. This Bill seeks to replace the above Ordinance. Hence the Bill. (Obtained from L.A. Bill No. 29 of 1992.) XXXI Amending Act 11 of 1993.— (As appended to at the time of introduction of the Bill) It is considered necessary to amend the Karnataka Tax on Luxuries (Hotels and Lodging Houses) Act, 1979, the karnataka Tax on Professions, Traders, Callings and Employments Act, 1976, the Karnataka Entertainments Tax Act, 1958 and the Karnataka Sales Tax Act, 1957 to give effect to the proposals made in the budget speech and matters connected therewith. Hence the Bill. (Obtained from L.A. Bill No. 15 of 1993) XXXII Amending Act 18 of 1994.—It is considered necessary to amend the Karnataka Sales Tax Act, 1957, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka Tax on Entry or Goods Act, 1979, the 1958: KAR. ACT 30] Entertainments Tax 751 Karnataka Entertainments Tax Act, 1958, the Mysore Betting Tax Act, 1932 and the Karnataka Agricultural Income Tax Act, 1957 to give effect to the proposals made in the Budget speech and matters connected therewith. Hence the Bill. (Obtained from L.A. Bill No. 12 of 1994.) XXXIII Amending Act 25 of 1994.—It is considered necessary to amend the Karnataka Entertainments Tax Act, 1958 to give effect to the report of the Committee Constituted under the Chairmanship of Sri V. N. Subba Rao to suggest comprehensive policy for Karnataka Film Industry. The Bill among other things provides for : (i) levy of tax on cinematograph shows other than vedio shows on the basis of gross collection capacity per show in respect of entertainment held in cinema theatres situated within the limits of a local authority or town or village having a population above 15,000; (ii) levy of entertainment tax at one-half of the rate in respect of a Kannada film remade form a film of any other language after a period of ten years from the date of issue of certificate by the Central Board of Film Certification to such other Language Film; (iii) levy of entertainment tax at one-half of the rate in respect of a Kannada film remade from a film of any other language which has secured a best feature film award by the Central Government or any State Government or has figured in the Ponorama Section of International Film Festival; (iv) payment of-a lumsum tax in lieu of tax under section 3B in respect of cinematograph shows other than vedio shows on the basis of gross collection capacity per show (irrespective of actual shows held or not) in cinema theatres situated within the limits of local authority or town or village having a population above fifteen thousand; (v) exemption of entertainment tax for a period one year to be specified by the Government in respect of cinematograph show of a Kannada, Konkani, Kodava or Tulu film which has secured a best feature film award granted by the Central Government or any State Government or any internationally recognized award; (vi) exemption of entertainment tax for a period of six months to be specified by the Government in the case of cinematograph show of a film other than Kannada, Konkani, Kodava or Tulu film which has secured a best feature Entertainments Tax [1958: KAR. ACT 30 752 film award granted by the Central Government or any State Government or any internationally recognised award; (vii) levy of tax at one-half of the rates in the case cinematograph show of Kannada, Konkani, Kodava or Tulu film produced in the State of Karnataka; (viii) levy of tax at one-half of the rates in the case cinematograph show of a Kannada, Konkani, Kodava 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 31st December 1987. Certain consequential changes also have been made. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary), Part IV-2A dated 29th August 1994, as No. 714, p. 31.) XXXIV Amending Act 6 of 1995.—It is considered necessary to amend the Karnataka Sales Tax Act, 1957, the Karnataka Agricultural Income Tax Act, 1957, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka Entertainment Tax Act, 1958, the Karnataka Tax on Entry of Goods Act, 1979, Karnataka Tax on Luxuries, (Hotels and Lodging House) Act, 1979, the Mysore Betting Tax Act, 1932 and to give effect to the proposals made in the Budget speech and matters connected therewith. Hence the Bill. (Obtained from L.A. Bill No. 4 of 1995..) XXXV Amending Act 5 of 1996.—It is considered necessary to amend the Karnataka Tax on Luxuries (Hotels and Lodging Houses) Act, 1979, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka Entertainments Tax Act, 1958, the Karnataka Agricultural Income Tax Act, 1957, and the Karnataka Sales Tax Act, 1957 to give effect to the proposals made in the Budget speech and matters connected therewith. (Obtained from L.A. Bill No. 12 of 1996.) XXXVI Amending Act 15 of 1996.—It is considered necessary to make amendments to the following enactments. 1958: KAR. ACT 30] Entertainments Tax 753