Section 21 in Tamil Nadu Entertainments Tax Rules, 1939
21. [ [Substituted by G.O. No. 1085, Revenue, dated the 27th January 1941.]
(i)The Entertainments Tax Officer shall, if he proposes to sanction the application, fix the amount and the nature of security to be furnished by the proprietor for the proper payment of entertainments tax and the time within which such security should be furnished.][The amount of security deposit so fixed shall, in the case of a temporary (touring) theatre or an open-air theatre, be equal to [the entertainments tax payable] [Substituted by G.O. P. No. 770, dated the 17th July 1984.] based on the full capacity of the auditorium for a period of seven days. In the case of a permanent or a semi-permanent theatre, the amount of security deposit so fixed shall be equal to seventy-five per cent of the tax payable as aforesaid. For the purpose of calculation of the tax payable for a period of seven days under this rule, the number of shows shall be reckoned as fourteen in the case of temporary (touring) theatres, twelve in the case of open-air theatres and twenty-two in the case of permanent and semi-permanent theatres:Provided that the Entertainments Tax Officer may, in his discretion, fix the amount of security deposit in the case of a temporary (touring) theatre or an open-air theatre at twice the amount aforesaid and in the case of a permanent or a semi-permanent theatre at one and a half times the amount aforesaid.][The security shall be in any one of the following forms: -(i)Deposit in Government Treasury in cash;(ii)Government promissory notes duly pledged in the name of the Entertainments Tax Officer;(iii)Post office savings bank deposits;(iv)Deposits made with the State Bank of India or any subsidiary bank as defined in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (Central Act 38 of 1959) or any corresponding new bank as defined in clause (d) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Central Act 5 of 1970) or any non-nationalised scheduled bank operating in the State of Tamil Nadu, or the Tamil Nadu State Cooperative Bank and Central Co-operative Banks approved by the Registrar of Co-operative Societies for this purpose;(v)Loan bonds or debentures issued by quasi-Government organisations or other institutions, repayment of which is guaranteed by the Government, other than prize bonds and National Defence Certificates, duly pledged in the name of the Entertainments Tax Officer.Where security is furnished in the form of a deposit with any of the banks specified in item (iv) above, the deposit shall be made in the name of the "The Entertainments Tax Officer Account..... (Proprietor of the theatre)" and the proprietor shall, at the time of making the deposit, give an application/letter to the Bank to the effect that the deposit in question had been offered to the Entertainments Tax Officer as a security for the due performance of his obligations under the Tamil Nadu Entertainments Tax Act, 1939 (Tamil Nadu Act X of 1939) and that the deposit might be held, renewed or released according to the instructions of the Entertainments Tax Officer.] [Substituted by G.O. P. No. 749, dated the 12th July 1984.]However, in cases where post office savings bank deposits are offered as security, the post office savings bank pass book should be pledged by the proprietors of the entertainments [in the name of the Assistant Commissioner of Commercial Taxes] [Substituted for the words 'in the name of the Commercial Tax Officer' by G. O. P. No. 594, dated the 9th July 1985.] concerned and handed over to the concerned Entertainments Tax Officer. When the security is furnished, the Entertainments Tax Officer shall grant the proprietor a [permit or certificate of registration] [Substituted by G.O. Ms. No. 19, C.T., dated the 15th February 1999.] in Form IV.(vi)If, at any time, the deposit already furnished by a proprietor under sub-rule (i) is found to be inadequate, it shall be open to the Entertainments Tax Officer, by notice, to require the proprietor to make an additional deposit within the time specified in the notice.[Explanation. - For the purpose of fixing the amount of security, a place licensed for the exhibition of cinematograph film on television screen through video cassette recorder shall be deemed to be a permanent or semi-permanent theatre. [Added by G.O. P. No. 526, dated the 22nd May 1984.]
