Service Tax on Ticket Sales for Navratra Event

[Anish Goyal]

Dear all,

In garba dance event the organisers sell tickets, the tickets are entry fees for the public to enter the premises and participate in the Gabra dance Event. As per our interpretation, the Garba dance event is a dance event and the admission to such event is exempted vide Sr.No. 47(i) of the Mega Exemption Notification no. 25/2012. The same is reproduced hereunder:

“47. Services by way of right to admission to,-

(i) exhibition of cinematographic film, circus, dance, or theatrical performance including drama or ballet;

(ii) recognised sporting event;

(iii) Award function, concert, pageant, musical performance or any sporting event other than a recognised sporting event, where the consideration for admission is not more than ₹ 500 per person

 

whether as per our opinion the entry to such dance event will be taxable or not. If you consider admission to Garba Dance Event as taxable service, kindly let us know whether exemption as per Sr.No. 47(iii) for entry tickets of less than ₹ 500/- will be available or not.

[KASTURI SETHI]

Anish Goyal Ji,

Garba dance is covered under Serial No.47(i) Mega Exemption Notification No.25/12-ST dated 20.6.12 amended vide Notification No.6/15-ST dated 1.3.15 effective from 1.6.2015.This activity/service is exhibition of dance. Normally admission to exhibition is free of cost. Hence exempted from payment of Service Tax.

Regarding second query, since Garba dance is covered under Serial No.47(i), do not consider about charging for admission fee. Pl note that there should be no mis-classification. Second question is not relevant here.

[MUKUND THAKKAR]

Sir,

To avoid more confusion please donot use any where in pass " entry fee" only mention amount on pass . and scondly use word on pass " TRADITIONAL DANCE ( GARBA)"

enjoy Garba without service tax..

[KASTURI SETHI]

Sh.Mukund Thakkar Ji,

Yes.No amount can be charged in any form in category 47 (i) of Notifications mentioned in my reply dated 28.9.15.

[Anish Goyal]

Sir,

But in my case, we are charging an amount for tickets. We have to charge for entry passes. In this case will be covered under 47(i) or we have to charge service tax on tickets sold above ₹ 500?

[KASTURI SETHI]

If your activity falls under the category of Serial No.47(iii), law is very much clear. No confusion. As already advised, u r to ensure proper classification.

AI Summary

Service tax exemption for dance events: admission generally exempt but ticketing requires correct classification and compliance. Admission to a Garba dance event is treated as an exhibition of dance under Serial No.47(i) of the Mega Exemption Notification and is ordinarily exempt from service tax; organisers must avoid misclassification or labelling admissions as taxable entry fees. If the activity is classified under the separate exemption provision for other events, the exemption there depends on the admission consideration threshold, so charged tickets require correct classification and compliance with that provision's conditions.