Liability to tax

(1) Subject to the provisions of this Act and the rules made thereunder, there shall be levied a tax on the turnover of receipts of a hotelier. (2) There shall be levied a tax on the turnover of receipts at the following rates, namely: - (a) where the charge for luxury provided in a hotel is less than fifty rupees per day per person; nil; (b) where the charge for luxury provided in a hotel is one hundred rupees or more but does not exceed one hundred rupees per day per person; ten per centum of such turnover of receipts; (c) where the charge for luxury provided in a hotel exceeds one hundred rupees but does not exceed two hundred rupees per day per person; fifteen per centum of such turnover of receipts; (d) Where the charge for luxury provided in a hotel exceeds two hundred rupees per day per person; twenty per centum of such turnover of receipts; Provided that where the charges are levied otherwise than on daily basis or per person, then the charges for determining the tax liability under this section shall be computed proportionately for a day and per person based on the total period of occupation of the accommodation for which the charges are made and the number of persons actually occupying or permitted to occupy according to the rules or practice of the hotel. (3) Where, in addition to the charges for luxury provided in a hotel, service charges are levied and appropriated by the hotelier and not paid to the staff then such service charges shall be deemed to be part of the charges for luxury provided in the hotel. (4) Where luxury provided in a hotel to any person (not being an employee of the hotel) is not charged at all, or is charged at a concessional rate, nevertheless there shall be levied and collected the tax on such luxury at the rates specified in sub-section(2), as if full charges for such luxury were paid to the hotelier. (5) Where luxury provided in a hotel for a specified number of persons is shared by more than the number specified, then, unless the additional person is a child occupying the room along with his parent or guardian and no separate charge is recovered for the child, in addition to the tax levied for luxury provided to the specified number of persons, there shall be levied and recovered separately the tax in respect of the charges made for the extra persons accommodated. Explanation :- For the purpose of this sub-section, ”child” means a person who has not completed twelve years of age. (6) The State Government, may, by notification in the official Gazette and subject to the condition of previous publication, add or omit or reduce or increase any rate of tax specified in sub-section (2) and thereupon such rate or rates of tax shall be deemed to have been amended accordingly.