CHENNAI: While a few big releases are to hit theatres in a few weeks including Vijay-starrer Beast, Chennai's Albert Theatre has been sealed by the city corporation for failure to pay taxes. The theatre has over Rs 50 lakhs in dues.
Corporation officials told The New Indian Express that the theatre has been having dues for the last four-five years and the theatre was sealed after a long-drawn battle. Apart from Rs 51 lakhs as pending dues for property tax, the theatre also owes the city corporation Rs 14 lakhs in entertainment tax.
"The last two years, the theatre management said that they were not able to pay the taxes due to the pandemic when they were out of business. But the pending dues date back to 4-5 years and now, after it started operating, it has not come forward to pay," said a corporation revenue official.
Theatres are classified as 'A' and 'B' types for calculation of property tax. Albert Theatre comes under the B type and has to pay 6.5 per cent of their annual income in taxes to the civic body.
The rates of tickets (minus taxes) are taken into account for the calculation of the annual income. After setting aside 15 per cent for entertainment tax, 53 per cen of the total gross income will be calculated for arriving at the annual income.