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

Individual Exempt from Service Tax on Garden Rides Due to Ticket Pricing and Mega Exemption Notification An individual operating manual rides at a garden with a 30 entry ticket questioned service tax liability on earnings of 30 lakh annually from 2014 to 2017. A respondent clarified that prior to June 1, 2015, such activities were on the Negative List, and post this date, they were exempt under a Mega Exemption Notification if the ticket price was below 500. Thus, no service tax was applicable during the period in question. Another participant queried the applicability of service tax post-June 2015, suggesting it might be a state subject, but the exemption due to ticket pricing was reaffirmed.