Govt demands Rs 68 crore from seven Pune multiplexes

PUNE: The Maharashtra Government has renewed its demand for dues of Rs 68 crore from seven multiplexes in the city while accusing them of collecting entertainment tax illegally. State revenue minister Chandrakant Patil has issued orders to the multiplex operators demanding that this tax which was collected from the citizens should be deposited with the government.

Speaking to Hindustan Times, the Pune District Collectorate’s head of entertainment tax department, Sushma Patil, said as per the minister’s order of December 8, the district administration has issued the notices to the multiplexes to pay the dues of Rs 68 crore.

Patil said, as per the government policy, the entertainment tax has been waived off for multiplexes for the first three years of their operation. In spite of this provision, the multiplexes collected entertainment tax from the citizens.

Patil said multiplexes which have been issued notices include City Pride Kothrud, City Pride Satara Road, Inox, E Square, Gold Adlabs and Big Cinema. The notices were served after an inspection drive conducted by the district administration.

This dispute between the government and multiplexes has remained unresolved over the last few years. Previously, the multiplexes had appealed against the notices received from the district collector in 2014. While the matter was not pursued vigorously then, the incumbent revenue minister Patil conducted a hearing and issued fresh orders in favour of the district administration.

The government has held that if the multiplex operators have collected the entertainment tax despite it being waived off, it needs to be transferred to the government. The government has also cited a ruling by the Supreme Court in which entertainment tax has been recovered from multiplex operators.

Multiplexes respond

When asked about the notices, Arvind Chaphalkar, managing director, City Pride Multiplexes told Hindustan Times:“We are in the process of appealing in the high court against the order for repayment of the entertainment tax to the government. We are already paying GST, and now this. We will reply by appealing in the court.”

Neerav Panchmia, MD, E-Square Multiplex said, “Although our name is in the list, we have been paying our taxes; even GST and have acknowledgement for the same since July 2017. This must be pertaining to other multiplexes in the city, not ours.”

The Inox official did not respond to requests for comment.