Levy and collection of luxury tax

Tax198125 sections

Statutory text

(1) Subject to the provisions of this Act, there shall be levied and collected from every person residing in a hotel a tax (to be known as "luxury tax") in respect of any luxury provided in a hotel to him, at the following rates, namely :- Rate of tax.
- (a) Where the rate of charges for accommodation for residence (including charges for air-conditioning, television, radio, music, extra beds and the like but excluding charges for food, drink and telephone calls) is twenty rupees or more but is less than fifty rupees per person per day. Five percentum of such rate.
- (b) Where such rate is fifty rupees or more per person per day. Ten percentum 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.
(2) The tax payable under this section shall be collected by the proprietor and be paid into a Government treasury within the time and in the manner provided by or under this Act.
(3) In computing the amount of tax payable under this section, the amount shall, if it is not a multiple of five paise, be increased to the next higher multiple of five paise.

Study data processing for this section.

PDF: pending for this language.