Entertainment Tax on Events like Fashion Week: Karnataka HC

Published on 07 Feb 2018 by Tushar

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Image Courtesy: LegalDesire

In a recent order, the Karnataka High Court clarified that events such as Fashion Week are subject to entertainment tax.

Justice Vineet Kothari passed an order to this effect while disposing of a writ petition made by a company, Dream Merchants, which had challenged an assessment order imposing entertainment tax for the conduct of Bangalore Fashion Week in 2012.

A writ petition filed against imposition of entertainment tax for this event had initially been disposed of by a single judge of the High Court. An appeal against the single judge verdict before the Division Bench was thereafter was disposed of with a direction to the tax authorities to reconsider the objections of the petitioner and pass fresh orders.

However, even after this remand, the assessing authority saw it appropriate to impose and entertainment tax of Rs 4.75 lakh under the Karnataka Entertainment Tax Act, 1958 (‘1958 Act’). The same was challenged by Dream Merchants before the High Court.

Source: BarandBench



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