Levy and collection of luxury 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"). (2) The luxury tax shall be payable by the person residing in a hotel, at the following rates, namely:— (a) Where the rate of charges for accommodation for residence and such other amenities and services (exclusive of charges for food, drink and telephone calls) is fifteen rupees or more but does not exceed twenty-five rupees per day per person: Five per centum of such rate. (b) Where such rate exceeds twenty-five rupees but does not exceed fifty rupees per day per person: Seven and a half per centum of such rate. (c) Where such rate exceeds fifty rupees per day per person: Ten per centum of such rate: Provided that where such charges are levied otherwise than on daily basis or per person, then, the charges for determining the liability to tax 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. (3) The luxury tax shall be collected by the proprietor and paid within such period and in such manner as may be prescribed, into a Government treasury. (4) In computing the luxury tax, 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.