25 per cent entertainment duty during Christmas & New Year irks Hoteliers in Mumbai

Any hospitality establishment holding functions on December 24 and 31 by selling tickets exceeding Rs10 lakh will have to apply for permission 15 days in advance

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Hoteliers who engage disc jockeys or sell tickets for Christmas and New Year parties will have to pay 25% 'entertainment duty'.

"Any hospitality establishment holding functions on December 24 and 31 by selling tickets exceeding Rs10 lakh will have to apply for permission 15 days in advance," an official in the collectorate said."A copy of each ticket should be submitted to the collectorate," he added.

"The establishments having family parties with live music in banquet halls on these days will have to give a list of the family members attending so as to procure a no-objection certificate (NOC) for exemption of entertainment tax," he said.

A senior official in the collectorate said the schedule of an announced programme must be adhered to. If a discrepancy is found then party organizers will be liable for legal action as per a report in TOI.

The collector's flying squads may enter hotels and videograph patron.

Meanwhile, members of Hotel and Restaurant Association Western India (HRAWI) wrote to additional city collector H Sonawane seeking clarity on the norms. HRAWI president Dinesh Advani said such restrictions will end up discouraging the hotel industry from organizing special events .

State administration officials said all transactions of such programmes by these establishments must be certified by a chartered accountant within 15 days of the events.

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