40C. For the purpose of installing the electronic device with hardware and application software required for generating e-Tickets and for the maintenance of such device an amount of 50 paise per ticket shall be levied towards service charge and collected along with the price for admission and tax.
40D. No person shall, unless he is, the holder of a pass clearly marked "Free", be admitted to a cinema except through and e-Ticket indicating the payment of price for admission, tax, cess and service charge.
40E. The proprietor shall keep true and correct account regarding the number of e-Tickets generated, amount of tax, cess and service charge collected and their remittance and submit the returns along with Daily Collection Report in the end of each month to the local authority concerned in Form No. VIIIA.
40F. The proprietor shall pay the balance tax, cess or service charge, if any due to the local authority and any other amount found deficit as per the data maintained by the local authority.
40G. Every electronic device installed in the cinema theatre shall at all reasonable times be open to inspection by any officer authorised by the local authority concerned in this behalf.
40H. The Service charge Collected shall be apportioned among the service providing agencies as per the terms of agreement entered into with the Government.)
Payment of tax on admission to entertainments on payment of Subscriptions or Contributions to an institution
41. (1) When the payment for admission to an entertainment or a series of entertainments is a lump sum paid as subscription or contribution to an institution and when such payment enables the persons making it also to exercise other privileges or rights in that institution, the proprietor shall apply to the local authority concerned to fix such amount as appears to it to represent the right of admission to the entertainment or series of entertainments and the amount of tax payable on such portion.
(2) Along with the application, the proprietor shall furnish details of the number of persons so subscribing or contributing, the amount realised, the number and nature of the entertainments, the rates of payment for admission for those who have not so subscribed or contributed and the nature of other rights, privileges, etc. to which a person subscribing or contributing to the institution is eligible, and also a copy of the rules and regulations, if any, of the institution.
(3) The local authority concerned shall fix the amount Which appears to it to represent the right of admission to the entertainment or series of entertainments and the amount of tax payable thereon and may require the proprietor to furnish such security as it may think fit.
(4) The amount of tax fixed by the local authority concerned shall be paid by the proprietor with seven days from the date of receipt by him of the order of the local authority fixing the amount of tax due.
Exemption & Refunds
42. Any proprietor claiming exemption from payment of the tax under sub-section (1) of Section 7 of the Act shall, not less than fourteen days before the date of the entertainment present an application for such exemption to the local authority concerned.
Such application shall be accompanied by a fee of rupees five.
The local authority concerned may, in its discretion, require the proprietor to furnish such security as it considers necessary:
Provided that the local authority may, in its discretion, accept an application presented at shorter notice or after the entertainment has been held, “XXX) if it is satisfied that the entertainment falls under one or more of Clauses (a) to (d) of the said Sub-section.
43. (1) A local authority may, if it is satisfied that the information furnished in the application is correct and complete, that the correct fee has been paid and that the request falls within the Scope of Sub-section (1) of Section 7 of the Act, provisionally grant the exemption.