Government to levy 10 per cent entertainment tax on parties organised outside city limits
Government to levy 10 per cent entertainment tax on parties organised outside city limits
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The government has finally decided to put a stop to tax-free entertainment in rural Pune. Until now, hotels and clubs were organising big parties outside the city limits to escape the 20 per cent entertainment tax levied by the government.
The government realised that the amount of money they were losing out on was huge because of this trend.
According to a government resolution (GR), which will be out within two weeks, hotels, restaurants, clubs, resorts who organise parties will have to pay 10 per cent of the total cost as entertainment tax.u00a0
u00a0An official on request of anonymity said that the ordinance had already been passed but it would take sometime for those concerned to follow it. "The GR will be out in the next 15 days after which the concerned officials can follow it."
Gitanjali Shirke, head of the entertainment tax department, said that the ordinance was passed after a proposal was submitted to the higher officials.u00a0
"We had pointed out that in the last few years a number of parties were held at various places in the rural area. Then why not ask them to pay entertainment tax. The idea that they are underdeveloped area does not hold and organisers were taking good advantage of this," Shirke said. "This year we noticed that these parties draw a large number of crowds, which means that they earn good money. So, it will not hurt if they give 10 per cent of the total cost."
This way the entertainment department will be able to keep a track on the numerous events being organised in the rural area. The department is also planning to be strict while giving NOC certificates and sending notices to defaulters.
Shirke said they would hire more officers so that they are able to keep track of the events being held at each and every spot.u00a0 Some of the popular areas where events are held are the old-Mumbai-Pune highway, Mulshi, Khadakwasla, Bhor, Mandvi, Loni Khalbhor and Wagholi.u00a0
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