Method of calculation of tax

(1) Where the charges for luxury, provided in a hotel or a banquet hall; as the case may be, are inclusive of the charges for food and drink, the assessing authority may, after giving the proprietor an opportunity of being heard, segregate the charges separately i.e. charges for luxury and charges for food and drink. (2) Where any service charges, other than the charges for luxury, provided in a hotel or a banquet hall, as the case may be, are collected and appropriated either wholly or partly by the proprietor, and are not paid to the staff, such charges shall be deemed to be the part of the charges for luxury. (3) Where luxury in a hotel or banquet hall, as the case may be, is provided to any person free of cost or at a concessional rate, the tax shall be levied at the normal rate for such luxury. (4) Where luxury was to be provided in a hotel at a normal rate to certain specified number of persons, but actually the same was availed of by more than the specified persons, then the tax shall also be levied on the extra persons at the same rate.