Bombay High Court Upholds 2014 Amendment Allowing Maharashtra to Tax Online Ticket Convenience Fees Above ₹10

Overview

• The bench dismissed petitions from the FICCI-Multiplex Association of India and Big Tree Entertainment, ending legal challenges to the online booking levy
• The 2014 amendment to Section 2(b) exempts online booking charges up to Rs 10 but treats any excess as part of the admission price subject to entertainment duty
• The court held that paying convenience fees is a mandatory step to secure online tickets, making these charges a composite part of the ticket cost
• Justices Sonak and Jain ruled the amendment modifies only the measure of an existing tax and does not encroach on central taxation powers under the Union List
• The ruling left open whether convenience fees also attract central service tax under the Finance Act, 1994, leaving that question unresolved