Pre-Event Entertainment Tax No Longer a Must for Doing Ticketed Events in Delhi

by  EVENTFAQS Bureau Industry Watch | September 1, 2015 | News

EEMA Entertainment Tax

The Event and Entertainment Management Association (EEMA) has announced today that Platinum members of the association no longer have to pay entertainment tax for ticketed events in Delhi prior to the event.

This development follows after months of lobbying with the Delhi government. Through the initiative of Vijay Nair, CEO of OML and member of EEMA, several EEMA members met with the Chief Minister, Deputy Chief Minister and the Tourism Minister of Delhi a couple of months ago to discuss making Delhi an event-friendly place. Following a detailed EEMA representation, the CM appointed a nodal officer to engage with EEMA and find solutions in the shortest possible time. Following this, on August 26, EEMA Treasurer Rajeev Jain and member Michael Menezes also met with Excise Commissioner Sanjay Kumar. 

Platinum members of EEMA can now pay entertainment tax after the event on the basis of ticket sales. In order to facilitate this arrangement, EEMA will soon formulate MOU guidelines for the benefit of its members and also the Entertainment Tax Department in Delhi.

In order for members to benefit from this development, EEMA will submit a Bank Guarantee of a stipulated amount as surety for the entertainment tax to be paid by Platinum members post their events. In order for these members to benefit from this, they will be required to get an approval from EEMA’s treasury. This will enable them to execute events for which entertainment tax falls within this surety amount, and pay tax after.

Another positive outcome of EEMA’s recent efforts is that 23 auditoriums have been issued a permanent license for holding events. Sanjay Kumar, Commissioner of the Excise Department has released a list of these licensed auditoriums with single window clearance. The list includes FICCI Auditorium, Abhimanch Auditorium, Rajendra Bhawan Trust Auditorium, Chinmay Mission Auditorium, and more. For a complete list, click here.

In addition, Kumar has submitted a report to the CM’s office which says that the government will also work toward bring Entertainment Tax, Fire, MCD & Electricity under the purview of single window clearance

These developments are expected to simplify the process of getting licenses and other permissions, and do away with a good amount of bureaucratic delay when organising events.

Rajeev Jain, Treasurer EEMA stated, "This is indeed a big bold step by the Delhi Govt. & Dept. of Entertainment Tax. Change in the Entertainment Tax depositing framework for EEMA members is certainly a big gift to the industry and No. of ticketed & corporate events in the city will see a steep rise. This directive is a first step to make Delhi an event friendly city and reinforces the Event Industry as a major stakeholder in city’s growth."