Hyderabad: Vigilance and enforcement sleuths found theme parks and gaming zones evading entertainment tax.
In a report submitted to the government after a random check, 10 companies were found to have evaded Rs 6.2 crore in tax. This newspaper had earlier reported raids on these gaming zones.
Vigilance director-general R.P. Thakur directed the revenue department principal secretary to instruct the commissioner of commercial taxes to recover the money.
Fun Zone, Ocean Park, Snooker Zone, Cine Planet at Kompally, S&S Entertainment, Galaxy in Ameerpet, and SVM multiplex were named in the report. Vigilance officials found some firms were not reporting their actual turnover. Accounts of these parks revealed that entry fees were collected from customers.
Section 4C of the AP Entertainment Tax Act says that recreation centres have to pay 20 per cent tax on each admission or ‘participation in amusement’.
Recreation centres include theme parks, resorts, sports and games associations, cultural associations, magic shows, circuses, gokarting, video and computer games parlours and musical concerts. Events organised to promote classical music, dance and folk arts are exempt from the tax.
It was found that around 10 companies had a turnover of Rs 33.11 crore and entertainment tax payable is Rs 6.2 crore. Bigbazar, Quo Point Snooker at Kukatpally and Simply Snooker at Madhapur are other companies found to be erring by the vigilance department.
