Levy and collection of tax on luxury provided in a hotel

Levy and collection of tax on luxury provided in a hotel.-

1. (1) Subject to the provisions of this Act, there shall be levied and collected a tax on the luxury provided in a hotel in respect of every room (to be known as Luxury Tax) at the following rates, namely :-
   • (a) Where the charges for lodging Four per cent of

per room per day are more than one such charges

hundred and fifty rupees but less than four hundred rupees

1. (b) Where the charges for lodging Eight per cent of

per room per day are not less such charges

than four hundred rupees but less than one thousand rupees

1. (c) Where the charges for lodging per Twelve per cent of

room per day are not less than one such charges

thousand rupees

Provided that where charges for lodging are payable otherwise than on daily basis, then, for the purposes of determining the tax liability under this section, the charges shall be computed as for a day, based on the period of lodging for which the charges are payable : Provided further that where any charges for lodging are paid by any person who is a member of a Foreign Diplomatic Mission in India, then such person shall be exempt from the payment of tax;

(1A) tax levied under sub-section (1), shall be paid by every proprietor.

(1B) Notwithstanding anything contained in sub-section (1), no tax shall be levied and collected from a hotelier to the extent of tax not collected by him during the period from the 1st day of August, 1985 to the 31st day of March, 1986.

1. (3) In computing the amount of tax payable under this section, the amount shall, if it is not a multiple of five paise, be increased to the next higher multiple of five praise.