Fashion events plying entertainment must pay tax - SC
03 Dec '07
1 min read
Supreme Court of India has recently issued a rule stating that fashion shows not serving the purpose of charity or a noble cause will be liable to the payment of entertainment tax.
Organizers of fashion events must furnish evidences for their show to have catered either of the two above mentioned objectives failing which an exaction of entertainment tax as well as a penalty will be charged to the guilty.
However, organizers must not adhere to a charitable purpose as a trick to evade tax. The law was passed by a bench of Judges including C K Thakker and Altamas Kabir.
In a recent case, Amit Kumar, Director and Choreographer of a fashion show was charged both the tax and the penalty for running the 'Mr Gorakhpur' and 'Miss Gorakhpur' contest without prior permission from the district magistrate.
An entertainment tax of Rs43,270 and a penalty of Rs20,000 was charged on the petitioner who is now seeking the help of the apex court.
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