Levy and collection of tax

Levy and collection of tax.—(1) Subject to the provisions of this Act, there shall be levied and collected a tax in respect of any luxury provided in a hotel (hereinafter called the "luxury tax").

1. (2) The luxury tax shall be payable by the persons residing at hotel at the following rates, namely:—
   • (a) where the charges for residence is twenty-five rupees or more but does not exceed fifty rupees per day per person; 3 percentum of such charges.
   • (b) where the charges for residence exceeds fifty rupees but does not exceed seventy-five rupees per day per person; 5 percentum of such charges.
   • (c) where the charges for residence exceeds seventy-five rupees per day per person. 8 percentum of such charges: Provided that, where any such charges are paid by any person other than the citizen of India, in any foreign exchange, then such person or where such charges are paid by any person or class of persons as the State Government may, by order, direct, such as foreigners staying as guests in India of any Government, or of any corporation or company owned or controlled by the Government, or such other person as in the opinion of the State Government, it is expedient in the public interest to exempt, then such person or persons shall be exempt from the payment of luxury tax: Provided further that, where the charges are levied otherwise than on daily basis or per person, then, charges for determining the tax liability under this section, shall be computed as for a day and per person based on the period of occupation of the residence for which the charges are made and the number of persons actually occupying or permitted to occupy according to the rules or custom of the hotel.
2. (3) Where luxury is provided in a hotel to the representatives or employees of any company and charges for such luxury are to be borne by the company, then there shall be levied and collected the luxury tax from such company. Explanation.—In this sub-section "company" means any body corporate, and includes a firm or other association of individuals.
3. (4) The luxury tax under the foregoing sub-sections shall be collected by the proprietor and paid within such period into a Government treasury or the State Bank of India, and in such manner as may be prescribed.
4. (5) In computing the luxury tax under this section, a fraction of a rupee which is not a multiple of five paise, shall be rounded off to the next higher multiple of five paise.