Every proprietor of an Entertainment shall pay entertainment duty to the state government in respect of every payment for admission to the entertainment under Madhya Pradesh Entertainment duty and Advertisement tax Act 1936, a duty at the rate of 50% thereof in Municipal corporation areas and 40% thereof in rest of the areas with effect from 01-05-03 .Under section 4(2) (d) of M.P. Entertainment duty act 1936, cinema theatres pay duty by compounding system which is payable weekly in advance.