Levy of tax on hotels

(1) Every proprietor shall be liable to pay tax under this Act, on the amount received by him for luxury, provided in a hotel on daily basis, at such rate, as may be specified by the State Government by notification in the Official Gazette, but such tax shall not exceed fifteen per cent of the total received amount. (2) In case, an amount is received by a proprietor for luxury, provided in a hotel, other than on daily basis, the tax liability shall be determined by taking into consideration, the daily average charges of the amount so received: Provided that the tax shall be levied only if, the charges for luxuries are more than two hundred rupees per day or such other sum, as may be specified by the State Government by notification in the Official Gazette. (3) The tax levied under sub-section (1) or sub-section (2), as the case may be, shall be paid by the proprietor in such manner, as may be prescribed.