Levy of Service Tax on Amusement Parks & Events

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  1. Divya Mehta

    Divya Mehta Member

    What is the change introduced in Budget 2015 regarding the levy of Service Tax on Amusement Parks & Entertainment Events?
  2. Parul_Gupta

    Parul_Gupta Active Member

    Service Tax was earlier not levied on these activities as they were specifically mentioned in the Negative List of Services.

    However, Budget 2015 has introduced an amendment and these services would now not be covered in the Negative List and therefore Service Tax would be applicable on Amusement Parks. The impact of this is as follows:-
    1. Service Tax shall be levied on the service provided by way of access to amusement facility providing fun or recreation by means of rides, gaming devices or bowling alleys in amusement parks, amusement arcades, water parks and theme parks.
    2. Service tax to be levied on service by way of admission to entertainment event of concerts, pageants, musical performances concerts, award functions and sporting events other than the recognized sporting event, if the amount charged is more than Rs. 500 for right to admission to such an event. However, the existing exemption, by way of the Negative List entry, to service by way of admission to entertainment event, namely, exhibition of cinematographic film, circus, recognized sporting event, dance, Page | 4 theatrical performance including drama and ballet shall be continued, through the route of exemption. For this purpose a new entry is being inserted in notification No. 25/12-ST. The term recognized sporting event has been defined in the proposed amendment in the said notification.
    Shishir Nayak likes this.
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