Movie lovers are happy with HC ruling

Madras High Court's ruling that if a film is given entertainment tax benefit, ticket prices should be minus the 30 per cent ET component on admission fee has brought joy to movie-goers and small producers. However, theatre owners were not happy and claimed that they were being shown in poor light among the general public. Justice R Mahadevan, allowing a writ petition by one K J Saravanan, said yesterday that it would be the responsibility of the Chief Secretary, Home Secretary and Commercial Tax Department to ensure that the tax burden was not passed on to viewers in case of tax-exempted films. Necessary orders to this effect should be passed within four weeks, he said. In Tamilnadu, the cap on film ticket cost is Rs 120, which includes Rs one as maintenance charges and Rs 119 as admission rate. If the film is exempt from payment of entertainment tax besides Rs one as maintenance charges, only Rs 83.3 should be collected as admission fee, a saving of Rs 35.7.