Gujarat Tax on Luxuries (Hotels and Lodging Houses) (Amendment) Act, 2006*
| [Gujarat Act No. 13 of 2006] | [31st March, 2006] |
An Act further to amend the Gujarat Tax on Luxuries (Hotels and Lodging Houses) Act, 1977.
It is hereby enacted in the Fifty-seventh Year of the Republic of India as follows:-
* Received the Assent to by the Governor on the 31th March, 2006 is hereby published for general information.
1. Short title and commencement.- (1) This Act may be called the Gujarat Tax on Luxuries (Hotels and Lodging Houses) (Amendment) Act, 2006.
(2) It shall come into force on the 1st April, 2006.
2. Amendment of section 2 of Guj. 24 of 1977.- In the Gujarat Tax on Luxuries (Hotels and Lodging Houses) Act, 1977 (Guj. 24 of 1977) (hereinafter referred to as "the principal Act"), in section 2,-
(i) in clauses (a) and (e) the word "telephone" shall be deleted;
(ii) in clause (e), for the words 44 two hundred rupees per person", the words "five hundred rupees per room" shall be substituted;
(iii) after clause (b), the following clause shall be inserted, namely:-
"(c) "concessional rate" in relation to a luxury provided in a hotel means a rate lower than the normal rate fixed for such luxury by the hotel or lower than that fixed by the Government or any other authority under any law for the time being in force;".
3. Amendment of section 3 of Guj. 24 of 1977.- In the principal Act, in section 3, for sub-section (1), the following sub-section shall be substituted, namely:-
"(1) Subject to the provisions of this Act, there shall be levied and collected a tax on luxury provided in a hotel in respect of a room under the occupation by any person at the rate specified in the Table below:
TABLE
| Sr. No. | Daily lodging charges per room | Occupancy | Rate of tax |
| (1) | (2) | (3) | (4) |
| 1. | Where the charges for lodging are not more than rupees five hundred. | - | NIL |
| 2. | Where the charges for lodging are more than rupees five hundred but not more than rupees two thousand. | On consolidated payment made on the basis of 50 per cent. occupancy as per the average declared tariff. | 5 per cent. |
| 3. | Where the charges for lodging are more than rupees two thousand. | (a) On consolidated payment made on the basis of 50 per cent. occupancy as per the average declared tariff, or (b) On payment made on the basis of actual occupancy as per the declared tariff. | 8 per cent. 12.5 per cent. |
Explanation.- For the purpose of the Table, the expression "declared tariff" means the rate of charges declared by the proprietor under sub-section (1) of section 3B:
Provided that where charges for lodging are levied otherwise than on daily basis per room, then, for the purpose of determining the tax liability of any person occupying the room under this section, the charges shall be computed as a day per room based on the period of lodging for which charges are payable and the number of rooms actually lodged or permitted to lodge according to the rules or custom of the hotel.".
4. Insertion of new sections 3A and 3B in Guj. 24 of 1977.- In the principal Act after section 3, the following sections shall be inserted, namely:-
"3A. Consolidated payment of tax.- (1) The Collector may, on an application made in the prescribed form by the proprietor of any hotel in respect of which tax is payable under the category at serial No. 3 of the Table below sub-section (1) of section 3, allow such proprietor on such conditions as the Collector may impose, to pay the consolidated tax in respect of such hotel at the rate of 8 per cent. on the basis of 50 per cent. occupancy as per the declared tariff.
(2) The application under sub-section (1) shall be made by the proprietor within ninety days from the date of commencement of the Gujarat Tax on Luxuries (Hotels and Lodging Houses) (Amendment) Act, 2006 (Guj. 13 of 2006) and any person who becomes a proprietor on any day after the date of such commencement, may exercise such option within ninety days from the day on which he becomes the proprietor:
Provided that an application under sub-section (2) may be entertained by the Collector after the expiry of the period of ninety days if the applicant satisfies the Collector that he had sufficient cause for not making the application within such period.
(3) On an application made under sub-section (1), the Collector may grant permission and there upon subject to sub-section (4), the payment of tax shall be made accordingly.
(4) A proprietor of a hotel who has been granted permission for payment of tax under sub-section (3), may at any time but not before the expiry of a period of twelve months from the date of commencement of option, give a notice to the Collector in such form as may be prescribed, to revoke his option.
(5) The Collector, on receipt of notice under sub-section (4) shall revoke the option granted to the proprietor under sub-section (3) and on such revocation, the proprietor of a hotel shall be liable to pay tax in accordance with the provisions of this Act.
3B. Declaration of rate of charges.- (1) Every proprietor shall declare in writing to the Collector the rate of charges for any luxury provided in the hotels in respect of every room.
(2) Where any proprietor intends to revise the rate of charge for any luxury provided in the hotel, he shall intimate in writing to the Collector seven days prior to the date of giving effect to such revised rates and the proprietor shall be liable to pay the tax at the revised rate after the expiry of seven days from the date of receipt of such intimations, by the Collector".
5. Amendment of section 4 of Guj. 24 of 1977.- In the principal Act, in section 4, after sub-section (2), the following sub-section shall be inserted, namely:-
"(3) Where luxury provided in a hotel in any room to any person (not being an employee of the hotel) is not charged at all or is charged at a concessional rate, then, there shall be levied and collected the tax on such luxury, as if full charges for such luxury were paid to the proprietor of the hotel.".
6. Amendment of section 11 of Guj. 24 of 1977.- In the principal Act, in section 11, for the words and figures "Bombay Court-fees Act, 1959 (Bom. XXXV of 1959 Guj. 4 of 20)", the words and figures "Gujarat Court-fees Act, 2004" shall be substituted.
7. Amendment of section 21 of Guj. 24 of 1977.- In the principal Act, in section 21, in sub-section (2), clauses (aa) and (aaa) shall be re-renumbered as clauses (a-iii) and (a-iv) respectively and before clause (a-iii) as so re-numbered, the following clauses shall be inserted, namely:-
"(a-i) the form in which the proprietor shall apply under sub-section (1) of section 3A;
(a-ii) the form in which the proprietor shall give notice for revocation of option under sub-section (4) of section 3A;".