ANDHRA PRADESH ENTERTAINMENT TAX (SECOND AMENDMENT) ACT, 2005
 
Statement of Objects and Reasons:
The Andhra Pradesh Entertainment Tax Act, 1939 creates liability on exhibitors to pay tax on admission into cinema hall. Entertainment defined under the Act as Cinematograph exhibition to which persons are admitted on payment. The existing scheme of taxation on entertainments other than Cinematographic exhibition, though, partaking the character of entertainment, are not subjected to tax. As there has been a spurt in the leisure oriented activities and the definition of entertainment imposes limits on the power of the State to levy tax on entertainments, it is proposed to include the other forms of entertainments such as Musical concerts, Magic Shows, Cultural events and levy tax on admission charges for entertainment to exploit the potential.

To achieve the above objects in view, Government have decided to impose 20% of entertainment tax on admission charges to amusements and other forms of entertainment such in theme parts by amending the A.P .Entertainments Tax Act, 1939 suitably.

This Bill seeks to give effect to the above decision.
Short title, extent and commencement:- (1) This Act may be called the Andhra Pradesh Entertainments Tax (Second Amendment) Act, 2005.
It extends to the whole of the State of Andhra Pradesh.
It shall come into force on such date as the State Government may, by notification, appoint.
Amendment of Section 3. Act 10 of 1939:- In the Andhra Pradesh Entertainments Tax Act, 1939 (herein after referred to as the principal Act) in Section 3,-
  1. for clause (2), the following shall be substituted namely:- "(2) admission to an entertainment". includes admission to any place in which entertainment is held or entry to a place of amusement or recreation is provided for";
  2. for clause (4), the following shall be substituted namely:- "(4) entertainment" means cinematograph exhibition, amusements and other forms of entertainment such as musical concerts, magic shows, Go-karting , including recreation in theme parks, to which persons are admitted on payment";
  3. in clause (7),-
    in item (a), after the word "entertainment", the words "amusement or recreation" shall be inserted;
    for item (b), the following shall be substituted namely,-
    "(b) any payment for seats or other accommodation or entry in a place of entertainment or amusement, recreation"; and,
    in items (c), after the words "entertainment", the words "amusement or recreation" shall be inserted".
    3. Insertion of new Section 4-C:- After Section 4-B of the principal Act, the following new section shall be inserted namely:-
    "4-C Tax on amusement and recreation:- Irrespective of local area there shall be levied and paid to the State Government a tax at the rate of twenty percent (20%) on each payment for admission to or participation in amusement or recreation. The Tax so levied shall be paid by the proprietor of such amusement or recreation."