Hyderabad High Court accepts Dual Tax on Entertainment

The Hyderabad High Court, on Friday, accepted the dual tax on entertainment pronounced by the AP government. This was passed after the AP government requested two different taxes, one for those that are made in the State limits and a second and different tax for the films that are made outside the State. This was within the rights to promote trade, commerce and employment in the state.

The court upheld the notification that was issued by the United Andhra Pradesh and re-issued it. The notification issued in 2008 said, 10% of tax will be imposed on the films made in the state limits and 24% tax will be levied on the films that have been shot out of state.

This decision was passed by a bench, comprising of Justice V. Subramaniam and Justice J. Uma Devi. Aashirvad Films challenged this 2008 notification by the Andhra Pradesh government, which was duly dismissed by the bench of Hyderabad High Court.