Gujarat Tax on Luxuries (Hotels and Lodging Houses) Act, 1977*
| [Gujarat Act No. 24 of 1977] | [10th August, 1977] |
An Act to provide for the levy and collection of a tax on luxuries provided in hotels and lodging houses and for matters connected therewith.
It is hereby enacted, in the Twenty-eighth Year of the Republic of India as follows:-
* Received the Assent to by the Governor on the 10th August, 1977 is hereby published for general information.
1. Short title extent and commencement.- (1) This Act may be called the Gujarat Tax on Luxuries (Hotels and Lodging Houses) Act, 1977.
(2) It extends to the whole of the State of Gujarat.
(3) It shall come into force on such date as the State Government may by notification in the Official Gazette, appoint.
2. Definitions.- In this Act, unless the context otherwise requires-
(a) "charges for lodging" include charges for air conditioning, telephone, television, radio, music and extra beds and the like but do not include any charges for food, drink or other amenities.
Explanation.-If any question arises whether any charges are charged for lodging, such question shall be referred to the State Government and the decision of the State Government shall he final and shall not be called in question in any court;
(b) "Collector" includes any officer appointed by the State Government to exercise the powers and perform the functions of the Collector under this Act;
(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;
(d) "hotel" means a building or part of a building where lodging accommodation, with or without board is, by way of business provided for a monetary consideration, and includes a lodging house;
(e) "luxury provided in a hotel" means accommodation for lodging provided in a hotel, the rate of charges for which (including charges for air conditioning, telephone, television, radio, music or extra beds and the like but excluding charges for food, drink and other amenities) is not less than thirty five rupees per person per day;
(f) "prescribed" means prescribed by rules made under this Act;
(g) "proprietor" in relation to a hotel, includes the person who for the time being is in charge of the management of the hotel;
(h) "lax" means the luxury tax levied and collected under this Act.
3. Levy and collection of ??? tax.- (1) Subject to the provision of tills Act, with effect on and from the date on which this Act comes into force, there shall be levied in collected from every person a tax to lie known as "luxury tax") in respect of any ??? provided to him in a ??? the, following rates, namely.-
| (a) Where the charges for lodging are thirty five rupees or more but not more than fifty rupees per day per person. | 10 percent of such Charges. |
| (b) Where the changes for lodging are more than fifty ??? but not more than one hundred ??? par day person. | Rs. 5/- plus 20 percent of such charges in excess of Rs. 50/- per person per day. |
| (c) Where the charges for lodging are more than one rupees per day per person | Rs. 15/- plus 20 person of such charge in excess of Rs. 100/- per person per day. |
Provided that where charge for lodging are levied otherwise I has on daily basis or person then for the purpose of determining the tax liability of any person under this section the charges shall be computed as for a day and per person, based on the period of lodging for which charges are payable in and the number of persons actually Lodging or permitted to lodge or ??? to the rule or custom of the hotel:
Provided furl her that where any charges for lodging are paid by any person other than a citizen of India in any foreign exchange, then such person or where such charges are paid by any person or class of persons as the State Government may, by order, direct such as foreigners slaying as guests in India of any Government or of any Corporation or Company owned or controlled by Government, or such other person as in the opinion of the State Government it is expedient, in the public inti no it to exempt, then such person or persons shall be exempt from the payment of the tax.
(2) Where luxury is provided in a hotel to representatives or employees of any company and charges for such luxury are to be borne by the company, there shall be, levied and collected the tax from such company.
Explanation.-In this sub-section "Company" means any body corporate and includes a firm or other association of persons.
(3) 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 in the Act.
(4) In computing the amount of tax payable under this section, the amount, shall, if it is not a multiple of five pause, be increased to the next higher multiple of five paise.
4. Mode of collection of tax.- (1) Where the rate of charges for luxury provided in a hotel is inclusive of the charges for ??? or drink or oilier amenities, if any (being amenities referred to in clause (e) of section 2) then, the Collector may from time to time, after giving the proprietor an opportunity of being heard, fix separate rates of charges for such luxury and for food or drink or other amenities, it any being amenities referred to in clause, (e) of section 2 for the purpose, of calculating the tax under this Act.
(2) Where, in addition to the charges for luxury provided in a hotel, service charges are leaved and appropriated to the proprietor and not paid to the staff, then, such charges shall be deemed to be part of the charges for luxury provided in the hotel.
(3) Where luxury provided in a hotel to any person (not being an employee of the hotel) is not charged at all or is charged at a concessional rate, then also 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.
(4) Where luxury provided in a hotel for a specified member of persons is shared by mire than in number specified, then, in addition to the lax paid for luxury provided to the specified number of persons, there shall be levied and collected separately, lie tax in respect of the charge made for the extra persons accommodated.
(5) Where any proprietor fails or neglects to collect the tax payable under this Act, the tax shall he paid by the proprietor as if the, tax was recovered by the proprietor from the person to whom the luxury was provided and who was accordingly liable, to pay the same.
5. Returns.- (1) Every proprietor liable on pay lax under this Act shall furnish a monthly return in the prescribed form to the Collector within eight days after the expiry of the month to which the return relates.
(2) Every such return shall show the number of rooms or other accommodation in the hotel which is intended to be occupied, the number of persons who occupied such rooms or accommodation, the periods of their stay, the days of their arrival and departure, the amount of charges recovered from them together with such other information as may be prescribed.
(3) A proprietor furnishing a return as required by sub-section (1) shall first pay into Government treasury, in the manner prescribed, the whole amount of tax due from him according to such return and enclose a receipt of such payment with the return.
(4) Every return shall be verified in the prescribed manner.
6. Assessment and collection of tax.- (1) If the Collector is satisfied that the return furnished under sub-section (1) of section 5 is complete are ??? reason to believe that it, is incorrect, he shall assess the amount of tax due from the proprietor on the basis of such return.
(2)(a) If the Collector not satisfied-that the return furnished under sub-section (1) of section (1) is complete or he has reason to believe this it is incorrect and he thinks it necessary to require the presence of the proprietor or the production of further evidence, he shall serve on which proprietor in the ??? manner a notice requiring him on a date and at a place specified therein either to attend and produce or cause to be produced all evidence on which such proprietor relies in support of his return or to produce, such evidence as is specified in the notice.
(b) On the date specified in the notice, or as soon as may be thereafter, the Collector shall, after considering all the evidence which may be produced, assess the amount of tax due from the proprietor.
(c) If the proprietor fails to comply with the terms of the notice issued to him under clause (a) the Collector shall assess to the best of his judgement the amount of tax due from him.
(3) If a proprietor liable to pay tax under this Act fails to furnish a return in respect of any period within the period specified in sub-section (1) of section 5, the Collector shall, after giving the proprietor a reasonable opportunity of being heard, assess to the best of his judgment, the amount of tax if any, due from him.
(4) Any assessment made under this section shall be without prejudice to any penalty or prosecution for an offence under this Act.
7. Imposition of penalty in certain cases.- Where any proprietor liable to pay tax under this Act-
(a) fails, without sufficient cause or neglects to furnish a return as required by sub-section (1) of section 5, or
(b) while furnishing a return under sub-section (1) of section 5 fails, without sufficient cause, or neglects to pay into Government treasury the whole amount of tax duo from him according to such return as required by sub-section (2) of section 5, or
(c) fails, without sufficient cause to comply with the terms of notice issued to him under clause (a) of sub-section (2) of section 6, or
(d) has concealed the particulars of any transaction or has deliberately furnished inaccurate particulars of any transaction liable to tax,
the Collector may impose upon such proprietor by way of penalty, in addition to any tax assessed under section 6, a sum not exceeding one and one half times the amount of the tax.
8. Payment of tax and penalty.- (1)(a) The amount of tax-
(i) due where returns have been furnished without full payment therefor,
(ii) assessed for any period under section 6 less any sum already paid by the proprietor in respect of such period;
(b) the amount of penalty, if any, levied under section 7,
shall be paid by the proprietor liable therefor into a Government treasury by such date as may be specified in the notice issued by the Collector for this purpose, being a date not earlier than thirty days from the date of service of notice:
Provided that the Collector or the appellate authority in an appeal under section 9 may, in respect of any particular proprietor and for reasons to be recorded writing, extend the date of payment, or allow him to pay the tax or penalty (if any) by instatements.
(2) Any tax or penalty which remains unpaid as per the date specified in the notice of payment or after the extended date of payment, and any instatment not, duly paid, shall be recoverable as an arrear of land revenue.
9. Appeal.- (1) Any proprietor aggrieved by the order of assessment made under section 6 or by an order imposing penalty under section 7 may within three mouths from the date of receipt of the order, make an appeal to the prescribed authority (hereafter referred to as "the appellate authority").
(2) On receipt of an appeal under sub-section (1) the appellate authority shall, after giving to the appellant an opportunity of being heard, confirm, annual modify the assessment or penalty.
10. Revision.- (1) The State Government or such officer (not below the rank of a Deputy Secretary to Government) as may be designated by the State Government in this behalf (hereinafter referred to as "the designated officer") may suo motu or on an application made in that behalf, call for and examine the record of the proceedings of airy order made by the Collector or, as the case may be, the appellate authority and pass such order thereon as it or he thinks just and proper.
(2) No application under sub-section (1) shall he entertained if it is not made within a period of four months from the date of the order.
(3) No order which adversely affects any person shall he passed under this section, unless such person has been given a seasonable opportunity of being heard by the State Government or, as the case may be, the designated officer.
(4) Where an appeal lies under section 9 and no appeal is made no proceedings in revision shall be entertained upon an application.
(5) Where the State Government or, as the case may be, the designated officer rejects any application for revision under this section, it or he shall record the reasons for such rejection.
11. Court fees on appeal and application for revision.- Notwithstanding anything contained in the Bombay Court-fees Act, 1959, (Bom. XXXVI of 1959) an appeal made under section 9 and an application for revision made under section 10 shall bears court fee stamp of such value as may be prescribed.
12. Refund of tax.- (1) If any proprietor satisfies the Collector that on account of any clerical or arithmetical error in calculating the, amount of tax, the amount of tax paid by him or recovered from him in respect of any period exceeds the amount with which he is properly chargeable under this Act for that period, lie shall be entitled to a refund of the excess so paid or recovered.
(2) Where as a result of an order passed under section 9 or 10 the refund of any amount becomes due to a proprietor, the Collector shall refund such amount to him.
(3) The refund may be given either by cash payment, or by deduction of such excess from the amount of tax due from such proprietor in respect of any other period.
13. Offence.- (1) Any person who, being a proprietor liable to pay tax under this Act,-
(a) furnishes or allows or causes to be furnished an incorrect or incomplete return or fails to submit the returns as required by or under the provisions of this Act, or
(b) fraudulently evades or allows to be evaded the payment of any tax due from him or
(c) fraudulently makes or causes or allows to be made wrong entry in, or fraudulently omits or causes or allows to be omitted any entry from, any statement furnished or any accounts or register, or
(d) knowingly collects from any person any amount by way of tax in excess of the amount of tax payable by him under the provisions of this Act, or
(e) wilfully acts in ??? of any of the provisions of this Act or the rules made thereunder or any lawful orders passed in accordance therewith,
shall, on conviction, be punished with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees or with both.
(2) No court shall take cognizance of any offence punishable under sub-section (1) except upon a report in writing of the facts constituting such offence made by the Collector.
14. Offence by Companies.- (1) Where an offence under this Act has been committed by a company every person who, at the time when the offence was committed, was in charge, of, and was responsible to the company, for the conduct of the business of the company, as well as the company shall lie deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that, nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that the exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company audit is proved that the offence has been committed with the consent or ??? of or is attributable to any neglect on the part of, any director, ??? secretary or other officer of the company, such ??? or manager, ??? or other officer shall be liable to be proceeded as against and punished accordingly.
Explanation.-For the purposes of this section-
(a) "company" means a body corporate, and includes a firm or other association of individuals, and
(b) "director" in relation to a firm means if partner in the firm.
15. Compounding of offences.- (1) Subject to such conditions as may be prescribed, the Collector may, either before or after the institution of proceedings for an offence under this Act, permit any person charged with the offence to compound the offence on payment of such sum, not exceeding double the amount of tax to which the offence relates, as the Collector may determine.
(2) On payment of such sum as may be determined by the Collector under sub-section (1) no further proceedings shall be taken against the person in respect of the, same offence.
16. Powers to enforce attendance etc.- All authorities under this Act shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure 1908 (5 of 1908), while trying a suit, in respect of enforcing the attendance of, and examining, any person on oath affirmation or for compelling the production of any document.
17. Powers of inspection of accounts and documents and search of hotels.- (1) The Collector may subject to suck conditions as may be prescribed, require any proprietor to produce before him the working records of accounts registers or other documents or to furnish my information relating to the business of the hotel as may be necessary for the purposes of this Act.
(2) All working records of accounts, register or other documents relating to the business of any hotel shall, at all reasonable times, be open to inspection by the Collect or, and the Collector may take or cause to be taken such copies of extracts of such records as may be necessary for the purposes of testing the accuracy of the charges for such luxury or for informing himself as to the particular regarding which information is required for the purposes of this Act or and rules thereunder as would appear to him necessary.
(3) If the Collector has reason to believe that any proprietor has evaded on is attempting to evade the payment of tax due from him, he may for reasons to be recorded in writing, seize such records of accounts, registers or other documents the proprietor as may be necessary and shall grant a receipt for the same as shall retain the same so long as may be necessary in connection with any proceeding under the Act or for a prosecution.
(4) For the purposes of his Act, the Collector may enter and search any the or any place of business of the proprietor or any other place where the Collector has reason we believe this the proprietor keeps, or is for the time being keeping any records of accounts, registers or other documents of his business in relation to the hotel.
18. Certain provision of Limitation Act to apply to appeal and revision applications.- The provisions of sections 4, 5 and 12 of the Limitation Act, 1963 (36 of 1963) shall, as far as may be apply in computing the period for making an appeal under section 9 or an application for revision under section 10.
19. Bar of proceedings.- (1) No suit, shall lie in any Civil Court, to ??? aside or modify any assessment made or order passed under this Act.
(2) No suit, prosecution or other legal proceeding shall lie against the State Government or any officer or employee of the State Government for anything which is in good faith done or intended to be done in pursuance of this Act or any rules made thereunder.
20. Delegation of powers.- The Collector may delegate to any officer not lower in rank than that of a Deputy Collector, all or any of the powers conferred or duties imposed on him by or under this Act.
21. Power to make rules.- (1) The State Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-
(a) the form in which a monthly return shall be furnished by a proprietor under sub-section (1) of section 5, the other information which shall be shown in a return under sub-section (2) of that section, the manner in which the proprietor shall pay tax into the Government treasury under sub-section (3) of that section and the manner in which a return shall be verified under sub-section (4) of that section;
(b) the manner in which notice under clause (a) of sub-section (2) of section 6 shall be served on the proprietor;
(c) the authority to which an appeal under section 9 shall be made;
(d) the value of court fee stamp which an appeal and an application for revision shall bear, under section 11;
(e) the conditions subject to which the Collector may compound an offence, under sub-section (1) of section 15;
(g) the conditions which the State Government may impose under sub-section (1) of section 17;
(g) any other matter which is to be, or may be, prescribed under this Act.
(3) The power to make rules conferred by this section shall be subject to the condition of the rules being made after previous publication.
(4) All rules made under this section shall be laid for not less than thirty days before the State Legislature as soon as may be after they are made and shall be subject to rescission by the State Legislature or to such modification as the State Legislature may make during the session in which they are of laid or the session immediately following.
(5) Any rescission or modification so made by the State Legislature shall be published in the Official Gazette and shall thereupon take effect.