levied under section 6A, of the Act the question of levying additional tax and surcharge on show tax on these entertainments do not arise.
Point (2).- Section 7 of the Act provides that the entertainments tax shall not be levied on payments for admission to any entertainment where the local authority in Satisfied that the entertainment is of a wholly educational character etc. Hence, it is clear that entertainments exempted from the levy of tax under section 7 of the Act cannot be assessed to entertainment tax either under section 3 or under section 6A of the Act. Those entertainments cannot also be assessed to the additional tax under Kerala Additional Tax on Entertainment and Surcharge on Show Tax Act, 1963 (22 of 1963).
The Director of Panchayats will bring these instructions to the notice of all the Panchayats.
Sub:- Sealing of tickets - Section 6A of the Kerala Local Authorities Entertainment Tax Act - Direction issued. According to Rule 45 of the Kerala Local Authorities Entertainment Tax Act, 1961 all tickets proposed to be issued in respect of entertainment exempted from tax shall be got stamped. The methods for payment of entertainment tax have been laid down in the Rules. According to Rule 22, when tax is paid on the basis of returns the tickets shall be got stamped by the proprietor. There are also other methods for payment of tax viz., payment by means of stamps, payments where admission is regulated by mechanical contrivance etc. where sealing of tickets is not made. By the Kerala Local Authorities Entertainment Tax (Amendment) Act, 1969 a tax at the rate of Rupees 15/- per show for circus performances and Rupees 25/- per show for dramatic performances was introduced. In view of the fact that there is no provision in the Rules that tickets should be got sealed when tax is paid (tax is not obviously on the basis of returns) and since the shows are not exempted from entertainment tax, there would be no need for getting the tickets sealed.
Sub-Amendments effected to the Kerala Local Authorities Entertainment Tax Act, 1961 by the Kerala Local Authorities Entertainment Tax (Amendment) Act, 1969 - Clarification - Inclusion of Hypnotism under the term magic performances.
By Section 2 of the Kerala Local Authorities Entertainments Tax (Amendment) Act, 1969 "Magic Performances" are exempted from the levy of entertainment tax.
A question has been raised whether a performance of "hypnotism” will come within the meaning of magic performance for the purpose of exemption from the levy. Government have examined the question and Government, have been advised that "hypnotism” may be taken as coming within the meaning of the term "natural magic" which is defined as the art of working Wonders by a Superior knowledge of the powers of nature. For the above reasons, the "magic performance" exempted under Section 2 of the Kerala Local Authorities Entertainment Tax (Amendment) Act, 1969 have to be viewed as taking in an exhibition of hypnotic powers also.
In the circumstances Government are pleased to clarify that "magic performance” exempted under the Kerala Local Authorities Entertainment Tax (Amendment) Act, 1969 will include the performance of "hypnotism" also for the purpose of exemption from the levy of entertainment tax.