Tax on Entertainments
 
There shall be levied and paid to the State Government a tax on the amount collected on actual sale of tickets for admission to every show (hereinafter referred to as Entertainments Tax) in respect of entertainments held in the theatres specified in column(2) of the table below and located in the local areas specified in the corresponding entry in column(1) of the said table, calculated at the rates specified in the corresponding entry in column(3) thereof,
Local Authority Theatre Rate of tax on sale of tickets
(1) (2) (3)
(a) Municipal Corporation i) A/C and Air Cooled Theatres 20%
  (ii) Other Theatres 18%
(b) Selection Grade Municipality (i) A/C and Air Cooled Theatres 20%
  (ii) Other Theatres 18%
(c) Special Grade Municipality (i) A/C and Air Cooled Theatres 20%

(ii) Other Theatres

 18%
Explanation I: For the purpose of this sub-section "the amount collected on the actual sale of tickets" means the total amount collected on the number of tickets sold for admission to each show excluding the permissible amount of service charge collected thereon but including the element of entertainment tax

Explanation II : For the purpose of this sub-section "Municipal Corporation of Hyderabad" means any local area as notified by the Government under section 3 of the Hyderabad Municipal Corporations Act, 1955 and also includes the peripheral areas of Alwal, Rajandra Nagar and Gaddi Annaram Municipalities,

Explanation III: For the purpoase of this sub-section and sub-section(1-A) any local area declared as a notified area and equated to that of a particular grade of Municipality under section 398-A of the Andhra Pradesh Municipalities Act, 1965, shall be deemed to be a municipality on the same grade to which the notified area is equated".;
 
(1-A) There shall be levied and paid to the State Government a tax on the Gross Collection Capacity on every show (hereinafter referred to as the Entertainments tax) in respect of entertainments held in the theatres specified in Column(2) of the table below and located in the local areas specified in the corresponding entry in Column(1) of the said table, calculated at the rates specified in the corresponding entry in Column(3) thereof for the number of shows prescribed therein for every week.
 
Local Authority Theatre Rate of tax on sale of tickets
(1) (2) (3)
(a) First Grades Municipality All categories of theatres 10% of the gross collection Capacity per show multiplied by 21.
(b) Second Grade Municipality All categories of theatres 9% of the gross collection capacity per show multiplied 21.
(c) Third Grade Municipality All categories of theatres 8% of the gross collection capacity per show multiplied by 21.
(d) Gram Panchayats, Townships and any other local authorities;    
(1) With a population of 15,000 and above (i) Permanent and semi-permanent 7% of the gross collection capacity per show multiplied by 14.
  (ii) Touring and Temporary 7% of the gross collection capacity per show multiplied by 10.
(2) With a population of 7,500 and above but below 15,000 (i) Permanent and semi-permanent 6% of the gross collection capacity per show multiplied by 14
  (ii) Touring and Temporary 6% of the gross collection capacity shoe multiplied by 10.
3) With a population of less than 7,500 (i) Permanent and semi-permanent 5% of the gross collection capacity per show multiplied by 14.
  (ii) Touring and Temporary 5% of the gross collection capacity per show multiplied by 7.
 
Explanation: - For the purpose of this sub-section the term "Gross collection capacity per show" shall mean the notional aggregate of all payments for admission, the proprietor would realise per show, if all the seats or accommodation as determined by the licensing authority under the Andhra Pradesh Cinemas (Regulation) Act, 1955, in respect of the place of entertainment are occupied and calculated at the maximum rate of payments for admission as determined by the said licensing authority".