Service tax

This query is : Resolved

AMAR (Querist)
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12 September 2011 If an University renting it auditorium hall to an outsiders then is it liable to charge and pay Service Tax?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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13 September 2011 I am giving the rules made applicable for Nehru Center, Mumbai

Rules Governing the use of Auditorium
Control and Management
1. The Control and management of Nehru Auditorium shall be vested in the sub-committee of Nehru Centre.
Sub-Committee's Power to make rules
2. The sub-committee shall, from time to time, prescribe rules and regulations governing the general management, administration and maintenance in proper conditions, of the Auditorium including the appointment and duties of employees connected with the Auditorium. These rules are subject to alterations at any time at the discretion of the sub-committee without prior notice.
Use of Auditorium
3. Nehru Centre Auditorium will be permitted to be used at the discretion of the Sub- Committee of Nehru Centre for lectures, discourses, conferences, company meetings, performances and social, ducational, cultural and recreational activities on such days and at such time when it is not required for use of Nehru Centre and on such terms and conditions as prescribed from time to time by the Sub-Committee.
Schedule of charges and Timings.
4. The Schedule of charges prescribed in sub-rules (a) and and Timings (b) below for the use of the Auditorium shall remain in force till such time as they are revised by the Sub-Committee.
(a)
(i) Every additional period of an hour or part thereof, will be charged at the rate of Rs.7,000/- per hour for conferences, company meetings and other cultural programmes.
(ii) Company programmes, Meetings, Conferences, Conventions, Seminars Lectures, Symposiums AND Programmes Sponsored by, Supported by, In Association with, In Collaboration with programmes shall mean period not exceeding 4 hours. Normally, it is available between 10.00 a.m. and 5.00 p.m. & evening session means between 6.00 p.m and 10.00 p.m.
(iii) Term “Morning Session” or “Afternoon Session” or “Evening Session” shall mean a period not exceeding three hours. Normally Morning Session means from 10.00 a.m. to 1.00 p.m. Afternoon Session means from 3.00 p.m. to 6.00 p.m. & Evening Session means from 7.00 p.m. to 10.00 p.m.
(iv) Please note that non Starting the programme on time will disqualify the application for allotment in future.
The Schedule of maintenance charges for different purposes is as follows :
Statement Of Charges
4 (b) All Days Additional Charges per hour
1) Company programmes

Rs. 50,000/- per 4 hours session (per show)

Rs.7,000/-

2) Meetings / Conferences /Conventions/
Seminars/Lectures/ Symposium AND Programmes Sponsored by /Supported by/ In Association with / In Collaboration with

Rs. 50,000/- per 4 hours session (per show)

Rs.7,000/-

3) Cultural programmes of Registered Charitable Institutions under Charity Commissioner, Act, 1950

Rs. 22,000/- for 3 hours of Morning Session (per show)
Rs. 22,000/- for 3 hours of
Afternoon session (per show)
Rs. 25,000/- for 3 hours of
Evening Session (per show)
Rs.7,000/-

Rs.7,000/-

Rs.7,000/-

1) Rates are subject to change without notice.
2) Plus Service Taxes as applicable as per Government rule.
This includes the use of Auditorium, in-house, Chairs, Curtains, air conditioning, sound equipments and electricity, existing spot and solar lights and staff thereof. Any additional equipments and lights etc., if required will have to be obtained only form Nehru Centre's approved contractor on payment of hire and electrical charges. Outside sound system is not permitted.

(c) Nehru Centre's decision in respect of categorisation and charges shall be final and binding.
(d) For the transfer of dates, there will be an extra charges of Rs. 5,000/-. Transfer of date is permitted only once with 45 days advance intimation in writing from the date of performance/programme subject to availability of dates.
(e) The use of the Auditorium for rehearsals is not permitted.
(f) The applicant (if required) has to get the programme recorded through Nehru Centre Auditorium only, on payment of Rs. 500/- per shift.
(g) Additional Power / Electricity other than the available lights will be charged @Rs.1 ,000/- per shift.
(h) Cordless mics and collar mics if required will be charged @ Rs. 1,000/- per mic per shift.
(i) Charges for the Traffic Bandobust (See Rule No. 28), and for ushers (See Rule No. 29) should be paid before the commencement of the show.
SPECIAL INSTRUCTIONS:

1) Acoustics of the Hall and planning of the microphones are so adjusted that performing platform has to be at a certain location on the stage. This location is earmarked by the management of the hall and this location is restricted for the ideal acoustical performance in the hall.

2)The Parties Booking the Auditorium should ensure that the Mobile phones and pagers should be kept in off mode during the performance of the show.

3)Performance of Qawalies, Orchestras and Fashion Shows / Beauty Contest are strictly prohibited at Nehru Centre Auditorium.

4)The Auditorium is booked for performances as shootings are prohibited, therefore, the parties booking the Auditorium are permitted to use maximum two VHS cameras in the areas specified for their record purpose only. On line editing and professional cameras are strictly prohibited.

Application in prescribed form
5. (a) Every application for use of the Auditorium shall be submitted in the prescribed form furnishing all details, required in it to the Manager, Auditorium Nehru Centre, or to any other officer whom the sub-committee may direct to act on his behalf.

Advance Notice.
(b) The Booking of Auditorium can be made one year in advance.
Quarterly Allotments
(c) The Booking of weekends (Saturday & Sundays) and Bank Holidays can be made through Quarterly Allotment procedure. The dates of allotment procedure are non-transferable.
The last date for application for quarterly allotment schedule are as under :

January to March: 10th October
April to June: l0th January
July to September :l0th April
October to December:l0th July
Advance Payment refund
6. (a) Each application for the use of the Auditorium should be accompanied by Cash / Demand Draft / Cheque of Rs. 15,000/- as Security Deposit.

(b) On the acceptance of the application the balance payment towards hire charges etc. shall be paid no later than one month before the date of the use of the Auditorium, failing which the security deposit shall be forfeited and if the intimation regarding the cancellation or the payment is not received in this office in writing, the party shall have to pay the full amount of hire charges. In the absence of any intimation to this effect, the reservation will automatically cease and allotment will be made to a new party and if such parties book the Auditorium in future, full amount of the hire charges will be collected in advance at the time of booking the Auditorium.

(c) In the event of non-acceptance of the application, the said Security deposit of Rs. 15,000/- shall be refunded to the applicant.

(d) Full Payment Shall be made in Case of Saturday, Sundays and Bank Holidays.
Cancellation
(e) After making the application for the use of the Auditorium if the applicant withdraws his application, the Security deposit paid as mentioned is sub clause (a) shall be forfeited. However, if other payment towards hire charges, etc. have been paid as mentioned in sub clause (b) the same will be forfeited and the Security deposit shall be refunded.
Powers to accept or reject applications.
7. The sub-committee or any officer who is authorised by it on its behalf, after scrutinising the applications for the use of the Auditorium, may accept or reject them without assigning any reason. Their decision shall be final.
Security Deposits
8. (a) The Security deposit which shall be refunded subject to deduction, if any, under Sub-Rule (b) below, to him, on any working day, fifteen days after the use of the Auditorium. The deposit amount not collected within three years shall be forfeited without any notice.

(b)From the amount deposited under Rule 8(a) above, such sums shall be deducted as are needed to cover the cost of damage, if any, done to the assets, properties including building, furniture, fixtures, fittings, painting, electrical and other apparatus etc.; during the use of the same by the applicant, and the balance, if any, shall be refunded to the applicant. The decision of the Manager, Auditorium, of Nehru Centre in these matters shall be final and binding on the applicant concerned.
Recoveries for excessive damages.
(c) If the cost of damage done to the building etc., referred to clause (b) of this Rule be more than the deposits amount, the difference as determined by Nehru Centre shall be paid by the applicant.
No Claim entertained on cancellation of permit.
9. Nehru Centre shall have the authority at any time to cancel the permission already granted to any applicant without assigning any reason in which case the applicant shall be refunded the amount already paid by him without interest thereon. The applicant shall not be entitled to claim any damages or compensation whatsoever by reason of such cancellation.
Permits liable to cancellation to objectionable or irregular use.
10. If at anytime after the grant of permission of the use of the Auditorium,

Nehru Centre considers that :

(a) The performance, or the meeting as the case may be, for which permission has been granted, (i) is objectionable or, (ii) is transgressing or likely to transgress any of the Rules and Regulations relating to the use of Auditorium, or

(b) The applicant booking the Auditorium has handed over the programme to the Event organisers, while the booking stands in the name of the applicant or

(c) The applicant has made false statement concerning the scope and object of the meeting or performance. Nehru Centre shall be at liberty to cancel the permission to use the Auditorium without assigning any reason. In such
Programmes infringing copyright disallowed.
11. (a) No programme shall be allowed in the Auditorium which would constitute an infringement of copyright of any individual or institution. Should any such programme take place before the knowledge or infringement comes to light, the applicant infringing the copyright shall be responsible for all consequences, legal or otherwise which may follow. Nehru Centre shall in no way be held responsible for the same.

(b) The applicant shall give an undertaking in writing that the performance does not infringe the copyright law.
Validity of reservations copyright disallowed.
12. All reservation as also all receipts for all payments of charges or and dues, only when signed by the person authorised by the sub-committee to act on its behalf shall become valid.
Sub-Committee not responsible if the Auditorium not allowed.
13. The use of the Auditorium shall be available in order of reservation made in advance but for any reason, if it is not possible to allow the use thereof, Nehru Centre shall not be responsible in any respect, and in this event, the amount standing to the credit of the Auditorium not allowed, the party shall be refunded but the applicant shall not be entitled to any damage or compensation on that account.
Charges payable for overtime.
14. If the applicant fails to return the possession of the Auditorium to the Custodian within the time specified, he shall pay such extra charges and penalty as may be determined by Nehru Centre in its absolute discretion for the unauthorised use of the Auditorium without prejudice to the rights of Nehru Centre to take any other action against the applicant.
Use limited to specified areas only.
15. The permission to use the Auditorium is strictly limited to the stage, the Auditorium and the necessary adjuncts thereof. It does not include access or right of user for any other part of floors of the building including foyer.
Permit non-transferable.
16. The applicant shall not transfer his permit or grant permission for use to any other person /persons for whole or any portion of the Auditorium
Any disfigurement of Auditorium is forbidden
17. The applicant shall not drive nails in any part of the building or furniture nor do any such acts as would spoil or disfigure the Auditorium in any way. He shall not also remove the furniture or other article and fixture from their original positions.
Nehru Centre not responsible for failure of services
18. The Auditorium is equipped with a stage, sound and light equipment, Airconditioning, etc., for efficient services. While every effor t shall be made to maintain the service in order. Nehru Centre shall not be responsible for any failure of breakdown or curtailment thereof.
Orderly conduct of programme binding on applicant.
19. All programmes, and proceeding of the meeting or gatherings conducted by the applicant shall be orderly and entirely lawful and strictly within the scope of the objects for which the use of the Auditorium is permitted. The applicant shall undertake all responsibility and Nehru Centre shall in no way, be held responsible in this matter. The applicant shall ensure that no damages takes place to the property, furniture, fixtures and fittings of the Auditorium. The applicant shall make adequate arrangements of security personnel to ensure avoidance of such incidents.
No overcrowding in the Auditorium.
20. The applicant will not allow overcrowding in the Auditorium which has a seating accommodation of 917 seats inclusive of twenty three seats reserved for the Nehru Centre Authorities and two seats reserved for the Authorities of the stage Performances Scrutiny Board. No more persons will be permitted in the Auditorium over and above these fixed seats as per the order Police Commissioner.
Smoking and other nuisance forbidden
21. Spitting, smoking committing nuisance of any kind or otherwise, making any portion of the Auditorium or furniture walls, etc., dirty in any way is strictly prohibited and the applicant shall be responsible for the observance of these rules.
Catering inside forbidden
22. No eatables of drinks of any kind shall be taken inside the hall or passages. Catering facility must be availed from the Sip-N-Snack counter of Jewel of India Restaurant at Nehru Centre Auditorium.
Signboard for display.
23. Not earlier than a week before the day of the use, the applicant shall be allowed to display only one signboard not exceeding 6' x 3' and one banner 18' x 1.5' can be displayed on the day of performance at the main entrance of Nehru Centre Auditorium, subject to approval of the Manager within the Auditorium premises. Save the aforesaid, no banner or other display or advertisement of any kind in connection with programme or function will be permitted within the Auditorium premises or Discovery of India Complex or on the road in the vicinity.
No music or loudspeaker at or outside entrance
24. No music of any kind shall be played at the entrance nor shall loudspeakers be installed outside the entrance of the Auditorium.
Badges for artists
25. The applicant shall provide proper badges (signs) to the artists and all other person who are required to work on the stage. Only persons wearing badges shall be allowed on the stage.
Authority to enter Auditorium.
26. The Custodian, Manager, Officers and staff of the Auditorium and of Nehru Centre connected with the Auditorium Department shall have full authority to enter any part of the stage or auditorium during the use of the same by the applicant.
Responsibility of applicant for all legal obligations.
27. The applicant shall be solely responsible for :
a)
(i) Proper use of the Auditorium, furniture, fixture and fittings and other properties of Nehru Centre.

(ii) Any damages that may be caused to the Auditorium, furniture, fixtures and fittings or properties of Nehru Centre.

(iii) Observance of police and Municipal Rules and Regulations in force for the time being, including non-use of the Auditorium beyond the stipulated period fixed by the Government and Municipal authorities and obtaining Ticket Selling and Entertainment licences from the Police Commissioner and/or other concerned authorities.

(iv) Payment of all taxes including Municipal Theatre Tax or any State and / or Central Government Tax / Service Tax leviable on the performance.
(b) Xerox copies of the following documents as may be relevant will have to be furnished one week before the performance/programme, to the Manager of Nehru Centre Auditorium.

(i) Form H: Ticket selling licence obtained from Theatre Department, Commissioner of Police, Crowford Market, Mumbai.

(ii) Form E: Performance licence obtained from Assistant Commissioner of Police, Opp. Dunlop House Worli, Dr. A. B. Rd., Mumbai, Worli Division.

(iii) Form A: Receipt of the theatre tax paid in advance to the Mumbai Municipal Corporation, Theatre Division. J.B. Shah Market Bldg., Next to Masjid Station 4th floor, Mumbai.

(iv) Certificate from Ranghoomi Prayog Parinirikshan Mandal (Censor Certificate), Barrack No. 18, Behind Sachivalaya Gymkhana, Backbay Reclamation, Mumbai - 21.

(v) Certificate from Home Department, Mantralaya, Mumbai, wherever applicable.

(vi) IPRS licence obtained from The Indian Performing Right Society Ltd., 208 Golden Chamber, 2nd Flr., New Andheri Link Road, Andheri (W), Mumbai - 400 053, Wherever applicable.

(vii) Payment of additional tax paid to M. M. C. in case of performance by Foreign Troupes.

(viii) Clearance Certificate obtained from the Security Board of the Government of Maharashtra.

(ix) Permission of the Author.

(x) Payment of Entertainment Tax to the Collector of Mumbai, wherever applicable.

Traffic Bandobust
28. The Police bandobust is compulsory for controlling vehicular traffic and crowds on the day of the performance and will be made by the Auditorium authorities but the party booking the auditorium will have to deposit the necessary amount as will be decided by the Management. The Bill and receipt for the same shall be handed over to the party one month after the show.
Services of Ushers
29. The services of the Ushers shall be provided at the Auditorium by Nehru Centre and the party booking the Auditorium will pay the necessary amount as applicable.
Reserved
30. Ten seats in ‘R’ row bearing seat nos. 12 to 21 for film shows and in ‘B’ row bearing seat nos. 9 to 18 and in ‘G’ row bearing Seat nos. 1 to 13 for other events shall be made available without any charges to Nehru Centre Authorities to be used by them as they think proper. Nehru Centre shall be entitled to issue passes for the said seats which will be accepted by the party using the Auditorium.
Reserved seats for Authorities of Scrutiny Board
31. Two seats in ‘B’ row bearing seats nos. 19 and 20 are reserved for the Authorities of the Stage Performances scrutiny Board in terms of Rule 140 of the rules for licensing and controlling places of Public Amusement (other than cinemas) and Performances for Public Amusement including Melas and Tamashas, 1960. Two seats in ‘R’ row bearing seat nos. 22 and 23 shall be reserved in case of film shows for concerned authorities.
Requisitioning of facilities
32. The existing facilities of Stage Solar Lights, Spot-Lights, Curtains, Sound Systems, Films & Slide Projection, etc., can be requisitioned at the time of booking of the Auditorium. Under no circumstances outside sound system shall be permitted.
Security of the Auditorium.
33. Overall security for the Discovery of India Building which houses the Auditorium is available, however, special/additional security requirement by the applicant will have to be arranged by him at his own cost, the arrangements for which will have to be done by him with the approved security agency of Nehru Centre.
Fire Precautions
34. “Under no circumstances candles, panthies, diyas, incense sticks or no such inflammable materials be allowed in the auditorium premises even if it is a part of drama or event. However, one lighting lamp would be allowed on the stage for the inaugural purpose only.”
Insurance Cover
35. The applicant shall make his own arrangement for the insurance cover for all types of risks for his own and third parties property and life. Nehru Centre does not accept any responsibility for any loss or damages to the property and life in whatsoever manner of any liability towards him or third parties.
Gate Pass
36. No material will be allowed to be taken out of the Auditorium hall without the valid gate-pass obtainable from the officer authorised by the Manager - Auditorium of Nehru Centre. The applicant should ensure that all dues to Nehru Centre have been paid and a clearance certificate obtained from the authorised officer before any material is allowed to be taken out.
Car park
37. Parking will not be permitted within the Auditorium premises or on the road nearby, except in the car park provided exclusively for the applicants and visitors to Auditorium.
Oral agreements
38. In the event of any infringement of these regulations the Chief Executive / Authorised Officer of Nehru Centre is entitled to close down the operation of the applicant immediately without assigning reasons.
Infringement of regulations
39. In the event of any infringement of these regulations the Chief Executive / Authorised Officer of Nehru Centre is entitled to close down the operation of the applicant immediately without assigning reasons.
Indemnify
40. Every applicant holds his programmes at the Auditorium at his own risk. The applicant hereby agrees to indemnify Nehru Centre and keep them indemnified against any legal proceedings or cost, charges, expenses and/or damages that may be suffered, incurred or borne or which may rise from any non-settlement of payments and any injury or accident caused to property used by him or by his agents, representative, contractors or employees, neither the applicant nor his agents, representatives, contractors or employees will have any claims against Nehru Centre for damages, either for personal injury or damage to any of his property arising from negligence or default of any person of from any other cause or for any loss, sustained as a result of temporary non-availability of any of the services in the Auditorium. The applicant shall effectively indemnify Nehru Centre from any liability whatsoever including that of any injury or harm to the visiting public arising out of the programme held at the Auditorium. The applicant shall notify his agents, representative, contractors and employees of these conditions. It is hereby agreed and understood that no right, title or interest is intended to be created nor shall it be deemed to have been created in respect of the hall area allotted to the organiser and the payment of hire charges shall be strictly in respect of the user of the hall area for specified period. Further that the user shall not be authorized to let / sublet / assign whole or part of the hall area to any other person / persons.
Tickets
41. You are required to submit Two (2) samples of ‘Tickets / Invitations / Donor
Cards 15 days before the performance / Programme. The Tickets / Invitations
/ Donor cards have to be mandatorily SEAT NUMBERED. In case of free
Invitation cards, each card has to be mandatorily ENDORSED by Nehru Centre
Auditorium before distribution.
Inter-Pretation
42. The decision of the Manager, Auditorium of Nehru Centre as regards interpretation / relaxation of the rules and regulations shall be final and binding on the applicant.