Liability to tax

(1) Subject to the provision of this Act and the rules made thereunder there shall he levied a tax on the turnover of receipt of a hotelier or restaurant. (2) There shall 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 one hundred 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 two hundred rupees per day per person. — Ten percent turn of such turnover of receipts. (c) Where the charge for luxury provided in a hotel exceeds two hundred rupees but does not exceed three hundred rupees per day per person. — Fifteen per-centum of such turn over of receipts. (d) Where the charge for luxury provided in a hotel exceeds three hundred rupees per day per person. — Twenty per-centum of such turnover of receipts. (e) Where the charge for the sumptuous food provided in a hotel or restaurant exceeds thirty rupees per meal per person. — Five percent turn of such turnover of receipts. Provided that a hotelier or a restaurateur shall not he liable to assessment for payment of tax on sumptuous if the annual turnover of receipts of a hotelier or restaurateur on account of sumptuous food is less than Rs. 2,00,000 per annum. 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. Provided that where the charges are levied other wise than per meal per person then the charges for determining the tax liability under this section shall be computed proportionately per meal per person. (4) Where, in addition to the charges for luxury or sumptuous food provided in a hotel or a restaurant, service charges are levied and appropriated by the hotelier or restaurateur are not paid to the staff then such charges shall be deemed to he part of the charges for luxury or sumptuous food provided in the hotel or a restaurant. (5) Where luxury or sumptuous food in a hotel or restaurant to any person (not being an employee) is not charged at all, or is charged at a concessional rate, nevertheless there shall be levied and collected the tax on such luxury or sumptuous food at the rates specified in sub-section (2), as if full charges for such luxury or sumptuous food were paid to the hotelier or the restaurateur. (6) Where luxury provided in a hotel for a specified number of person 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. (7) For the Purpose of this Act, tax collected separately by the hotelier or restaurateur shall not be considered to be part of the receipt or the turnover of receipts of the hotelier or the restaurateur.