Manual rides

[SHARAD ANADA]

Individual is providing swings, sliders, seat ups etc facilities at a garden type place with entry ticket of ₹ 30 per person. All rides are manualy operated without use of electricity. Person earned ₹ 30 lakh in 14-15 and around such amount in 15-16, 16-17. Is he liable to service tax?

[KASTURI SETHI]

Prior to 1.6.15 such activities were included in Negative List. See Section 66 D (j) as it existed prior to 1.6.15 and w.e.f. 1.6.15 these activities were included in Mega Exemption Notification No. 25/12-ST as amended vide Notification no.6/15-ST dated 1.3.15 (Serial No.47). In the scenario explained by you, exemption is available. No ST is applicable for the whole period mentioned. Conditional exemption is available i.e if price of ticket is less than ₹ 500/- per person for admission to the amusement/entertainment park. In your case, entry ticket is ₹ 30/- only. Hence entitled to exemption.

Therefore, no ST is payable by virtue of Negative List and exemption Notification mentioned above.

[SHARAD ANADA]

Sir,

Entry 47 of 25/2012 does not cover entry to amusement park. And wef 01.06.2015 it is also removed from negative list. Does it mean entry to amusement park is taxable from 01.06.2015? Can we argue that it's state subject under entry 6 2 of state list Pl guide.

I am reproducing entry 47 of 25/2012 for your ready reference.

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.

[KASTURI SETHI]

Entertainment tax levied by Local Bodies was not subsumed..

AI Summary

Service tax exemption for amusement park admissions continues where ticket price is below statutory threshold and manual rides provided. Provision of manually operated amusement rides with low-priced admission falls within the Negative List before the mid year change and thereafter within the Mega Exemption Notification (Serial No.47 as amended); the conditional exemption for right to admission where consideration is below the prescribed threshold means no service tax is payable in the factual scenario described, while municipal entertainment tax was not subsumed and may raise separate state/local taxation questions.