Himachal pradesh act 015 of 1994 : Himachal Pradesh Tax on Luxuries (in Hotels and Lodging Houses) Amendment Act, 1994

Section 1. Short title and commencement

1. Short title and commencement.- (1) This Act may be called the Himachal Pradesh Taxon Luxuries (in Hotels and Lodging Houses) Amendment Act, 1994.

(2) Sections 4, 5 and 6 shall come into force at once and the remaining provisions of this Act shall be deemed to have come into force on the 1st day of August, 1993.

Section 2. Amendment of section 2

2. Amendment of section 2.- In section 2 of the Himachal Pradesh Tax on Luxuries (in Hotels and Lodging Houses) Act, 1979 (hereinafter referred to as the principal Act), after clause (e), the following clause (ee) shall be added, namely.-

(ee) "new hotel" means a hotel, located within the State of Himachal Pradesh, which commences operation on or after 1st day of August, 1993, and shall also include an existing hotel, the proprietor of which after the 1st day of August, 1993-

(i) expands, alongwith facilities and services already being provided therein, its existing accommodation by at least twenty five per cent with as additional capital investment of not less than twenty five per cent of the existing capital investment but without any change in the nature of the facilities and services, or

(ii) diversifies it by providing new facilities and services with an additional capital investment of not less than twenty-five per cent of the existing capital investment.

but does not include any hotel which is formed as a result of re-establishment, more change of ownership, change in the constitution, re-conduction or revival of an existing hotel.

Explanation.- For the purposes of this clause "capital investment" means investment made on land, building, machinery and plant by the proprietor of the hotel".

Section 3. Insertion of sections 6-A and 6-B

3. Insertion of sections 6-A and 6-B.- After section 6 of the principal Act, the following sections 6-A and 6-B shall be inserted, namely:-

"6-A. Special provisions relating to deferred payment of luxury tax by-proprietors of new hotels.- (1) Notwithstanding anything contained in any other provision of this Act, if the Government is of the opinion that with a view to provide incentives to the proprietors setting up new hotels in the State, it is necessary or expedient in the public interest so to do, it may, under a scheme notified in this behalf under this Act, and subject to such restrictions and conditions as may be specified in such scheme, provide for deferred payment of luxury tax payable under section 4 by such proprietor who is registered under this Act:

Provided that the State Government may, for the purposes of this sub-section, make a scheme retrospectively with effect from the 1st day of August, 1993.

(2) Subject to the provisions of sub-section (1), the proprietor referred to therein, if eligible for grant of facility of making deferred payment of luxury tax under the scheme notified under sub-section (1), may make deferred payment of luxury tax payable by him.

"6-B. Power to exempt the proprietors of new hotels from payment of luxury tax.- (1) Notwithstanding anything contained in any other provision of this Act, if the Government is of the opinion that with a view to provide incentives to the proprietors setting up now hotels in the State, for providing luxury therein, it is necessary or expedient in the public interest so to do, it may, by notification, exempt the proprietor of a new hotel from the payment of luxury tax, for such period, not exceeding five years, as may be specified in the said notification subject to the condition, that-

(i) such new hotel comes into operation between the period commencing from the 1st day of August, 1993 and ending on the 31st day of July, 1998, and

(ii) the rates of charges for the luxury provided in such new hotel do not exceed one hundred rupees per person per day.

(2) The Government may, for the purposes of sub-section (1), issue notification retrospectively with effect from the 1st day of August, 1993 in respect of the new hotels coming into operation between the 1st day of August, 1993 and the commencement of the Himachal Pradesh Tax on Luxuries (in Hotels and Lodging Houses) Amendment Act, 1994.

(3) Notwithstanding anything contained in sub-section (6) of section 4, no proprietor of a new hotel, in respect of which a notification under sub-section (1) has been issued, shall, during the period when such exemption remains in force, collect any sum by way of luxury tax to the extent of exemption provided in the notification.

(4) Every notification issued under sub-section (1) shall, as soon as may be after it is issued, be laid before the State Legislature.".

Section 4. Amendment of section 8

4. Amendment of section 8.- In section 8 of the principal Act,-

(i) after the figure and sign "8", and before the word "Any", the brackets and figure "(1)", shall be inserted;

(ii) in sub-section (1)-

(a) in the first proviso after the words "tax assessed" but before the words "and the penalty", the brackets and words "(including interest payable)", shall be inserted; and

(b) in the second proviso, after the words "without the tax" but before the words "or penalty", the brackets and words "(including interest payable)" shall be inserted.

Section 5. Amendment of section 10

5. Amendment of section 10.- In section 10 of the principal Act, the words and figure "or an application for revision made under section 9" shall be omitted.

Section 6. Substitution of section 11

6. Substitution of section 11.- For section 11 of the principal. Act, alongwith its heading, the following shall be substituted, namely:-

"11. Tax, penalty and interest recoverable as arrears of land revenue.- The amount of luxury tax and penalty imposed or interest payable under this Act, which remains unpaid after the due date shall be recoverable as arrears of land revenue.".