Mumbai: The Taj Mahal Hotel and the Oberoi have evaded Rs 3 crore in land revenue and entertainment tax of the state revenue department, a recently released report by the Comptroller and Auditor General (CAG) has observed. Also, entertainment tax of Rs 49.94 crore has been evaded by cable operators, theatres, video centres and others, said the report.
As per the report, the Indian Hotel Company Limited Taj Mahal Hotel, Mumbai’s Zodiac Grill, Sea Lounge and Star Board Bar pubs have evaded entertainment duty of Rs 84 lakh. The Oberoi Mumbai’s The Eau Bar has also evaded entertainment duty of Rs 48 lakh.
“Despite a lapse of five years, the amount has not been recovered so far. No action has been taken to recover the amount as arrears of land revenue under section 9 of Maharashtra Entertainment Duty (MED) Act,” the report said. Also, reminding the revenue department about its promise on the recovery, the CAG said during the exit conference, the department accepted these facts and said recovery would be made. In another lapse of recovering revenue, the CAG has pointed out that as per section 3(4) of the MED Act, “there shall be levied and paid by the proprietor to the state government, the entertainment duty at the rate specified from time to time”.
“Test check of records of 59 units in nine districts have revealed that entertainment duty amounting to Rs 6.64 crore was not paid by 1,090 cable operators out of test checks of 5,979 cable operators during various period between 2011-12 and 2014-15. The demands were not raised by the concerned collectors, resulting in non-realisation of entertainment duty to that extent,” the report said.
During test checks of records of 20 offices in Mumbai, the suburbs, Pune, Raigad and Thane districts, entertainment duty of Rs 3.03 crore was not paid by the proprietors of 111 permit room/beer bars during various periods between 2011-12 and 2014-15, the report added. Despite contacting the Oberoi’s public relations officer, the company has not responded to calls.
