05 March 2016
Finance Act 2015 made the following changes in the Negative List:
" * Service Tax shall be levied on the service provided by way of access to amusement facility providing fun or recreation by means of rides, gaming devices or bowling alleys in amusement parks, amusement arcades, water parks and theme parks. * Service tax to be levied on service by way of admission to entertainment event of concerts, pageants, musical performances concerts, award functions and sporting events other than the recognized sporting event, if the amount charged is more than ₹ 500 for right to admission to such an event."
Hence, based on the above amendment it is clear that, access to amusement park is taxed without any limit. Further, admission to entertainment events such as concerts, pageants, musical performances concerts, award functions and sporting events in excess of 500/- will be subject to service tax on full consideration.
Thus a plain reading of the amendment makes it amply clear that whatever the charges for entrance to amusement parks, the same shall be subject to service tax. There is no exemption of Rs.500 applicable.
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