Here is the story of the invention of dance in Ancient India, as written from
http://www.indiandance.ru/En/DanceHistory.htm:
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In Vishnu Dharmotarpuran 'Markandeye saint' told devotee Vajra about the invention of dance. Which is known as 'Nrittsutram' as a whole.
Long-long ago when everything was destroyed after Pralya (day when life, earth and all cosmos merge back to the Brahmma's body). A lotus was produced from the navel of the Vishnu. On that lotus lord Brahma was sitting. Same time Devta and Daanav were also produced. Two Daanav Madhu and Kaitabh took the Vedas from Brahma and hide them somewhere so that no body can help Devta.
Brahma prays to Vishnu and pleased him. Vishnu asked him to have a wish. Brahma said that these four Vedas are my eyes, without them I can not foresee my creation. Kindly bring those to me. Vishnu stood up from the Sheh bed and start walking on the floor of the ocean.
Laxmi observed that it was not a simple walk but a well-oriented and beautifully arranged movement of the body and hand features. Vishnu turned into Ashwashir (man with the head of the horse) and went to the Paatal Lok (a mythological place supposed to be under seabed). Madhu and Kaitabh saw the Ashwashir and run to catch him. Ashwashir killed both of them and brought the Vedas back to lord Brahma. Laxmi asked 'O my lord' kindly tell me about the walk to performed on the seabed. I feel immense pleasure to watch those beautiful movements of yours. Kindly explain it to me. Vishnu said these are Anghaar and Karan and body movements are known as dance who ever will pray me through dance, he will achieve the Moksha (When Soul stops to and Fro to the earth and remain in the heaven). Lord Vishnu explained these Anghaar and Karan to Brahma and asked him to summarize them. Brahma taught these to Bharat Muni.
Lord Shiva, The cosmic dancer. According to Vedas he is the inventor of Dance. He dances on every evening. All the Devta took part in the dance recital by accompany it. Brahma gives Taal, Vishnu plays Mridang Goddess Saraswati plays Veena, Sun and Moon Plays flute, All the Apsara and Kinners (Dancers and Musician of the heaven) plays musical notes, Nandi plays Damru, Bhringi plays Maadal and Naarad sings.
The earth moves by the leg movements while the cosmos, planet, stars etc moves with his hand movements. That is why in Vedas that is said 'Nritymayam Jagat' means "Nature is full of dance".
Once Tripurasur a demon gave lot of problem to Devta and snatched all of their properties. All Devta were bound to live in jungle or caves. Even then he was not satisfied and gave lots of troubles. All Devta went to Brahma. Brahma along with them went to Vishnu. Vishnu told them that only Lord Shiva can kill him so all of them went to the lord Shiva and requested him to help them by killing the Tripurasur. Shiva agreed to help them. He stood up with anger and start searching the demon. He started dancing with anger and energy as he saw the demon he cut his head with his trishul. His dance which was full of energy, anger, enthusiast, he taught that dance to his dear student Tandu who was also known as Nandikeshwar.
As Tandu further spread this dance, it was named as Taandav. On the basis of dance of lord Vishnu, summarized by Brahma, he taught those dance to Bharat Muni and ask him to teach to his disciples. Bharat Muni prepared a drama named "Tripur Daah" and performed at Kailash at the front of Lord Shiva on Brahma's wish. Shiva was happy after seeing the performance and asked Tandu to teach Taandav to Bharat Muni so that his drama will be completed.
On the other hand Parvati, wife of lord Shiva danced an elegant, soft dance, which was full of love to please and calm lord Shiva. That dance was called Lasya. This dance she taught to Usha, the daughter of Vanasur (who was a great devotee of lord Shiva). Usha was married to Aniruddh, the grandson of lord Krishna. And through her, dance was spread on earth. Krishna also started Rasa, which is the base of Kathak Natwari Nritya.
Earlier dance was a media of rituals and Puja. devotional dances, which were usually performed on some spiritual event in or around the Temple by some selected people or Community who were considered holy and pure by the general people. These dances were performed to please the God, devotional dances based on some stories from Ramayan; Mahabharata or other holy books were taken. These dancers were known as Bharats, Nut, Kushilav, Chaaran, or Kathak.
Earlier musicians and dancers was good mathematician. They calculate and make different and difficult compositions for performance, which shows their superiority on others. All legendary devotees of ancient time were great dancers. In Hindu religion in major people are divided into three categories 1st "Shaiva" who believes in Lord Shiva 2nd "Vaishnava" who believes in lord Vishnu or in his incarnations 3rd "Shaakats" who believes in Shakti or incarnations of Goddess Parvati. Lord Shiva as Natraj, the cosmic dancer. Shri Krishna (incarnation of lord Vishnu) as Natnaager and Parvati herself as dance partner of Shiva are known to all."
