As many as six multiplexes in the city have been directed to deposit Rs 68.65 crore in seven days for having collected entertainment tax despite a state government waiver on it. An order issued in this regard by Additional Collector Ganesh Patil says the multiplexes had collected the amount even though the state government had waived off the tax.
The multiplexes that have been issued notices are City Pride (Satara Road),E-Square,Mangala,Gold Adlabs (Kalyaninagar),Gold Big Cinemas,Inox and City Pride (Kothrud).
District head of the entertainment department Geetanjali Shirke said,They can only get an extension if they approach the collector. It would be up to 30 days, said Shirke.
The administration maintained that the multiplexes had been exempted from entertainment tax and service tax as per the state government policy for the industry. The waiver was in place for the first three years and then the following two years. However,the multiplexes continued to charge the same service tax and entertainment tax from citizens,thus violating government guidelines. Quoting a Supreme Court order,the administration said if the local body finds multiplex operators charging taxes in violation of norms,the amount has to be returned to the state government. The amount will go into the state governments treasury, said a district official. The period for each of the six multiplexes has been calculated from the time the government had given 100 per cent exemption for the first three years and 75 per cent exemption for the next two years.
The entertainment department has also sought the daily collection reports from the multiplexes to prepare the report against them. The multiplexes will have to pay the amount or face stringent action, said Shirke.