Agartala, February 19 (TIWN): Report of Select Committee on the Tripura Entertainment Tax (Amendment) Bill, 2014 was presented in the House during session here on Tuesday.

The report submitted by Select Committee indicates that if the Bill enacted and brought into force, shall not entail any major expenditure from the consolidated fund of the state except a negligible amount on administrative expenses in implementing the amendments. Besides, the amendments once come into force, will generate additional tax revenue of approximately Rs. 0.50 crore annually. 

The Tripura Entertainment Tax (Amendment) Bill, 2014 was tabled in the House on September 01, 2014 for consideration and passing by the House in its sitting on September 03, 2014.

During consideration of the Bill in the House, some salient points cropped up requiring detailed scrutiny and then the Bill was referred to the Select Committee by the Speaker for detailed examination and report to the House.

The select committee was constituted with 11 members. Minister Bhanulal Saha was chosen as the chairman of the committee. In its last meeting held on January 21, 2015, the committee went through the revised draft Bill and approved the same unanimously.  

According to the statement of objects and reasons by Minister Bhanulal Saha, Direct to Home (DTH) services is considered as means of entertainment under section 4 of the Tripura Entertainment Tax Act, 1997. The service providers of DTH services have been paying VAT on different equipments like set top boxes.

In a surprise move, the service providers have changed the mode of their business operations in order to avoid payment of VAT. Therefore, the inclusion of DTH services under the ambit of the Tripura Entertainment Tax Act, 1997 is felt necessary to compensate the loss of government revenue on account of non-payment of VAT by the DTH service providers by means of change in the mode of business, stated Saha.

The amendment of schedule is proposed for incorporation of DTH services under the Entertainment Tax with no change in existing rate of tax on cinematographic exhibition, video show, all the entertainment covered under section 3 and cable network. The Tripura Entertainment Tax (Amendment) Bill, 2014 seeks to achieve these objectives, mentioned Saha.