ORDERS BY THE GOVERNOR
';. ;_ .. ·
LEGISLA'l'IVE DEPARTMENT LEGISLATIVR BRANCH
NOTIFICATION
The 20th Ap1il, 1989 No. LGL.31/89/61. - The foilowing Act of the ~ssam Legislative Assembly which received the assent of the Governor is hereby published for general · information.
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40~ THE ASSAM GAZETTE. EXtRAORDlNARY, ApRtL ~I, 1989 - --·------- - -
ASSAM ACT No. V of 1989
Received the assent of the Governor on 12th April 1989)
THE ASSAM TAX ON LUXURIES (HOTELS AND
LODGING HOUSES) ACT, 1989 · An
Act
to provide for the imposition of a tax on luxu- ries in hotels and lodging houses. Preamble. Whereas it is necessary to make an addition to the revenues of Assam and, for that purpose, it is expedient to impose a tax on the luxuries in hotels and lodging houses and to provide for matters connected therewith.
It is hereby enacted in the Fortieth Year of the Republic of India as follows :-
Short title, 1. (1) This Act ·may be called the Assam Tax. ~="~:- On Luxuries (Hotels and Lodging Houses) Act, 1989 . ment. i
(2) It extends to the whole of the State of Assam.
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(3) It shall be deemed to have come into force with effect from the first day of April, 1989. Defln.ition.s, ~· In this Act, unless the context otherwise re-
I
quires, -
(1) ''assessing officer" in relation to any ho- ·telier . means the authority competent to assess the hotelier in accordance with section 5 of this Act;
(2) "business" includes the activity of provi- ding residential accommodation and any other ser- vice in connection with, or incidental or ancillary to, such activity of providing residential . accommo- dation, by a hotelier for monetary consideration; -~ (3) "Commissioner'' means the Commissioner cf Taxes, Assam; ·
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• THE ASSAM GAZETTE. EXTRAORDINAHY, APRIL 21, 1~89 40S ( 4) "concessional rate" in relation to a luxury · provided in a hotel, means a rate lower than the normal rate fi.x·ed by any Government, authority, or under any law for the time being in force;
(5) "hotel" includes a residential · accommoda- tion, a lodging house, an inn, a public house or a bullding or part of a bu_ilding, where residential uccommodation is provided by way of business; · ( 6) "hotelier" means, in relation to a hotel, the person Y 1ho owns the hotel and includes a per~on who for the time being is in charge of the manage- ment of the hotel; ·
(7) "luxury provided in a hoter• means accom-
. modation and other services provided in a hotel, the rate of charges for which including the charges for air-conditioning, telephone, television, radio, music, entertainment, extra b .. ds and the like, is one hundred rup.~ es per person per day or more; but does not include the supply of food and drinks where such supply is separately char~ed for;
(8) ''person" includes any company or .associa- tion or body · of individuals whether incorporated or not, and also a Hindu undivided family, a firm, a local authority, a State Government and the Cen- tral Government ; ·
(9) "place of business" includes an office, or any other place · which a hotelier uses for the pur-
. pose .of his business or where' ·he keeps his books of accounts ; ·
( 10). ''prescribed'' means prescribed by rules _made under this Act; _
(11) ''receipt" means the amount of monetary consideration received or receivable by a hotelier or
. by his agent for anv luxury · provided in a hotel;
(12) "registered hotelier" .means a hotelier t e· gistered ·under Section 6 of th1_s Act;
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l 406 THE ASSAM GAZETTE. EXTRAORDINARY, APRIL 21, 1989
(13) "rules" means rules made under this Act~
(14) .''State '' means the State of Assam; ( 15) "tax" means the , tax levied on luxuries
. . provided in a hotel payable under this Act;
(16) ''turnover of receipts" means the aggregate of the amounts of monetary co:i.sidnation received or receivable by a hotelier or by his agent in respect of the luxuries provided in a hotel during a giyen perioQ..
I,.iability to 3. (1) Subject to the provisions of this Act tax. and the rules made thereunder there shall be levied a ' tax on the turnover of receipts of a hotelier. ·
(2) There · sha11 be levied . a tax on the turnover of receipts at the following rates, namely :-
(a) Where the charge for luxury · provided in a hotel is less than one hundred rupees per ·day .per person-
(b) Where the charge for luxury provided m a hotel is one
. hunrired rupees or more but does not exceed two . hundred rupees per day per person-· -
· (c) Where the charge for luxury provided in a hotel exceeds two hundred rupees but does not exceed three hunrlred rupees per
. day per person-· Nil.
Ten per cen-
tum of such
turnover of
receipts.
Fifteen · per centum . of
such turnover of receipts .
(d) Where the charge for Twenty per luxury provided in a hotel exceeds centum of three hundred rupees per day per such turnover person- · · of receipts.
Provided that, where the charges are levied otherwise than on daily .basis or pu person then the char¥es for determinmg the tax liability under this section shall be computed proportionately for
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THE A.SSAM C AZETIE EXTRAORDINARY, APRIL_? l , 1()8n 4o7 a day and per person . based on the total period of occupation of the accommodation for which the charges are made and tht> number of persons actually occupying or permitted to occupy accor- ding to the rules or practice of the hotel.
(3) . Where, in addition to the charges for luxury provided · in a hotel, service charges are levied and appropriated by the hctelier and not paid to the staff then · such charges shall be deemed to be part of the charges fo r luxury provided in the hotel. ·
( 4) Where luxury provided in a hotel to any person ( not being an employee of the hotel ) is r:ot charged at all, or is charged at .a conce- ssional rate, nevertheless there shall be levied and collected the tax on ~ch luxu ry at th e rates specified in sub-section (2) , as if fo ll charges for such luxury were paid to the hotelier. ( 5) Where luxury provided in a hotel for a specified number of persons, is shared by more tha.n the number specified, then, unless the additional person · is a child occupying the room along with his parent er guardian and no separate charge is recovered for tf.e child, in . addition to the tax levied for luxury prcvided to the specified number of persons, there shail b e levied and recovered separately the tax in · · respect of the charg~s:made for the extra persons accommodated .
. Explanation.- For the purpme of this sub- section, " child " means a person who has not completed twelve years of age.
(6) The tax shall not be levied and payable iri respect of the turnover of receipts for supply of food and drinks, on the sale of which the hotelier is . liable to pay' sales tax under the Assam Sales Tax Aci, · 1947 (Assam Act XVII of 1947).
(7) For the purposes of this Act, tax collected separately by the hotelier shall not be considered to be part of the receipt or the turnover of receipts of the hotelier.
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4~· THE ASSAM GAZETTE. E .. \.T.H.AORDINARY APRIL 21, 198 Liability of 4. (1) Subject to the ptovisi.ons of this .Ket and hotelier to the rules made thereunder, there shall be paid by pay tax. every hotelier who is liable to- pay tax under this Act, the tax or taxes leviable in accordance with the provisions of this Act.
(2) If a person other than the owner (incJu- ding part~owner) is for the ti me being in charge of the hotel, then such person and the owner (including part-owner) shall jointly and severally be liable to pay the tax.
Exercise of 5. The authorities competent to assess, recover powers. ':'nd and enforce payment of tax under the Assam Sales authonues. Tax Act, 194 7, hereinafter referi ed to as the sales tax law, shall, within their local jurisdiction under the sales tax law, be competent to assess, recover and enforce payment of tgx due from any hotelier whose place of business is located within such jurisdiction r-.s if the tax were a tax under the sales tax law and the hotelier a dealer, with.in the meaning of the sales tax law, carrying on business withiri such jurisdiction . and, subject to the provisions of this Act and the rules, notifications and orders made thereunder, the said authorities, for this purpose, may exercise all or any oft-he powers they have under · the sales tax law, and the provisions of the sales tax law, i:ncluding provisions relating to inspections assessment, registration of the transferee of a bu- siness, imposition of tax liability of a person carrying on ·business on the transferee of, or suc- cessor to, such business, transfer of liability of any firm or Hindu undivided family to pay tax in the event of dissolution of s.uch firm or partition of such family, appeals, revisions, references, refunds, rebates, payment of interest, compounding of
offences and treatment of documents furnished by a dealer as confidential, shall mutatis mutandis apply accordingly.
Registration. 6· (1), No. hctelier liable tO pay the tax under section 3 shall provide accommodation by way of
. business, unless he possesses a valid certificate of registration as provided by this Act :
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THB A~SAM dAZETTE, EXTRAORDI'NAl{ Y, APRIL 21, 198? 409 Provided that, it shall be lawful for the ho- telier to P!Ovide or continue to provide ace mmo- dation by way of business if the hotelier has applied for registratio n within the prescribed time.
(2) Every hotelier requfred to possess ·a certi- ficate of registration shall apply in the prescribed form to the assessing officer within thirty days from the date on which the hotelier first becomes liable to pay the tax.
(3) 1f the assessing officer, after such enquiry as he deems fit, is satisfied that an application for · registration is in order, he shall register the appli- cant and issue to him a certificate of registration in the prescribed form. · ·
( 4) The assessing officer may, after considering any information furnished or otherwise calledfot or received under any provisions of this Act, amend from time to time the certificate of registration.
(5) Where a . registered hotelier discontinues, transfers or otherwise disposes of his activity of providing accommodation by way of business or where he ceases to be liable to pay the . tax and he applies in tile prescribed form to the assessing officer, the latter shall, after such inquiry as may be necessary, cancel the certificate of registration with effect from such date as he may fix in accor- dance with the rules.
(6) Where the assessing officer is satisfied that any registered hotelier has discontinued, transfe- red or otherwise disposed of the activity of provi- ding accommodation by way of business and has failed to apply under sub-section (5) for cancella- tion of certificate of registration, the assessing officer may, after giving the hotelier a reasonable opportunity of being heard, cancel the certificate of registration with effect from such date as he may fix to be the date from which the said activity has been discontinued, transferred or otherwise disposed of :
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410 THE ASSAM GAZETTE, EXTRAORDiNARY APRIL 21, 1989 Provided that the cancellation of certificate of registration on an application . of the hotelier or otherwise shall · not affc ct tJ;ie liability of the hotelier to pay the tax ( including any penalty or interest ) due for any period upto the date of cancellation whether such tax (including any penalty or interest) is assessed before or after the date of cancellation. Non-transfe- . 7. Save as otherwise provided in section 9, r a ~ility .0
r certificate cf registration shall be personal to the registration h 1. h · · d d h 11 b certificate. ote 1er to W Oill It IS grante an S a not e Informatiun
to be
iurnished
regarding
changesin
business,
ete.
transferable.
8. (i) If a hotelier liable to pay tax under this Act-
(a) sells or otherwise disposes of his business or any part thereof, or effects or makes any other change to his knowledge in the ownership of the business, or,
(b) discontinues his business, or changes the place thereof or opens· a new place of business, or· ·
(c) changes the name or nature of his business, or
(d) enters into a partnership or other associa- tion, in regard to his business
he shall, within the prescribed time, inform the prescribed au~hority accordingly.
(2) Where any such hotelier dies, his executor administrator or other legal representative or where any such hotelier is a firm and tbere is a change in the constitution of the furn or the firm is dissolved every person who was a partner thereof, shall in like manner, inform the said authority of such death, change in the constitution or as the case may be, dissolution.
Certificate 9.
uf registra-
Where a registered hotelier-
tion to eon-
tinue in cer-
tain circum•
stances.
(a) t~ffects changes in the naine of his business, or
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THE ASSAM GAZETrE, EXTRAORDINARY APRIL 2 1, 19fl9 4J1 Returns.
, .
(b) is a firm, 3.Jld there is a ch3.Jlge in the cons- titution of the firm without dissolution thereof, or ( c) is a trustee of a trust, and there is change in the trustees thereof, or ·
( d) is a guardian of a ward, · 3.Jld •there is a ch3.Jlge in the guardi3.Jl, then merely by reason of any of the circumst a.J].ces aforesaid, it shall not be necessary for the hotelier, or the firm with the changed constitution, or the new trustef'S or new guardian, to apply for a fresh certificate of regis- tration and on inform2tion· being furnished in the manner required by section 8, the certificate of registration shall be amended.
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10. (1) Every registered hotelier shall furnish . returns for such period, by such dates, and to such autho- rity, as may be prescribed .
(2) If anv hotelier, having furnished return under sub-section (1 ), . discovers any omission or incorrect statement therein, he may furnish a re- vised return before the expiry of three months next following the last date prescribed for _ furni- , shing the original return.
Prohibition 11. , ( 1) No· ~erson shall collect any sum by way a~ainst colic-of tax in respect of his business to the extent cuon of tax h h . 1· bl . d th A _in certain t at e IS not 1a e to pay 1t un er e ct. cases.
(2) No person who is not a registered hote- lier and liable to pay tax · in respect of ·luxury' provided in any hotel, shall collect any sum by way of tax from any other person and no regis- tered hotelier shall c.ollect any amount by way of tax in excess of the amount of tax payable by him under the provisions of this Act :
Provided that, this sub-section shall not apply where a person is required to com~ct such amount of the tax separately in order 'to comply with the conditions and restrictions imposed on him under the provisions of 3.JlY l?-w for the time being in force.
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l 412 rBE ASSAM GAZET"rE. !x1·R.AoRDINARY. APRiL . 21, l989 - --~ ----- -
Bill or cash 12. A registered hotelier shall issue to the cus- memoran- b '11 h d dum to be tomer or customers a . I or cas memoran um issued to serially numben.d, signecl and dated by him or his customer. servant, manager or agent and showing therein such other particulars as may be prescribed. Hr, shall keep a counterfoil or duplicate of such bill or cash memorandum duly sign~d and dated and preserve
it for a period of not less than eight years from the date of the transaction.
Accounts. 13. (1) Every hotelier liable to pay tax ' under this Act, and every hotelier who is required so to do by the assessing officer by notice served on him in the prescribed manner · shall keep a true account of the luxury provid.ed by him in .the hotel.
(2) If the assessing officer considers that the accounts kept are not sufficiently clear .or intelli- . giblc to enabJe him to determine whether or not ci. hotelier is liable to tax during any perio~, or are so kept as not to enable a proper scrutiny of the returns or the statement furnished, the assess- ing officer may require- such hotelier by notice in writing to keep such accounts in such form or manner as in his opinion is necessary for the pur- pose of proper assessment and as he may, subject to anything that may be prescribed in that behalf, in writing direct.
(3) The ComD?-is~ioner may, subject t~ su~h conditions or restnct1ons as may be prescribed m this behalf, by notice in writing direct any hotelier, or by notification in the Official Gazette, direct any ' ·class of hoteliers to maintain accounts and records showing such particulars regarding their business in such form, and in such manner, as may be speci- fied by him .
. . (4) Every - registered hotelier shall ordinarily keep all his accounts, registers and documents relating to his business at the place or places of business specified in his certificate of registration or, with the previous approval of the assessing officer, at such other place as may be approved by the a..sessing officer.
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THE ASSAM GAZETI'E, . EXTRAORDINARY APRIL 2 i, l 989 413 Hotelier to 14. Every hotelier, who is liable to pay tax, declare the d h · H" d ·d. 'd d f: 'I name of ow- an w o is a in u un 1v1 e aro1 y, Of . an asso- ner of busi- ciation or club or society or firm or company, or
ness. who carries on business as the guardian or trustee or
Imposition
of penalt y
for contra-
vening cer-
tain provi-
sions.
otherwise on behalf of another person, shall within the
period prescribed send to the authority . prescribed,
a declaration in the manner prescribed stating the
name of the person or persons who is the owner
or who are the ·owners of the hotel. Such declar- ·
aticm m"y be revised from time to time.
15. (1) If any . person-
(a) (i) not being a hotelier to £ay tax under t!-.is Act, collects any sum by way of tax, or
(ii) being a registered hoteli~r, collects any amount by way of tax in ~xcess of the tax payable by him, or
(iii) otherwise collects tax in contravention of the provisions of section 11, or
(b) being a hotelie~ liable .to pay tax under this Act, or being a hotelier who was required so to do by the assessing officer by a notice, served on him, fails in . contravention of. sub-section (1) of section 13, to keep a true account of . his. turnover of receipts or fails when directed so to do under that section to keep any accounts or . record in accordance with the direction,
he shall be . liable to pay, in addition to any tax for which he may be liable, a penalty of an amount as follows:-
(A) where there has been contravention refer- red to in sub-clause (i) or (ii) of clause (a) , a penalty of- an amount not exceeding two thousand rupees or double the sum collected 'by way of tax, whiehever is less,
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414 THE ASSAM GAZETTE. EXTRAORDINARY APRIL 21, 1989
(B) where there has been a contravention refer- red to in sub-clause (ii) of clause (a) or in clause '(b), penalty of an amount not exceeding two thou- sand rupees, and in addition any sum collected by the person by way of tax in contravention of section 11, shall be forfeited to the State Government.
(2) If the assessing officer, in the course of any proceeding under this Act or otherwise, has reason to believe that any person has become liable to a penalty or forfeiture or both penalty and forfei- ture of any sum under sub-section ( 1 ), he shall serve on such person a notice in the prescribed manner requiring him on a date and at a place specified in the notice to · attend and show cause why a penalty or forfeiture ~r ho.th pi:nalty and forfeiture of any sum as provided in sub-section (1) should not be imposed on him.
'c3) The assessing officer shall thereupon hold an enquiry and sh all make such order as he thinks fit·
( 4) No prosecution for an offence under this Act shall . be instituted in respect of the same facts on which a penalty has been imposed under this section.
\
. (5) When any order of forfeiture is made, the assessing officer shall publish or cause to be published a notice mereof for the information of the persons concerned giving such details and in such manner as may be prescribed.
Payment 16. (1) Tax shall be paid in tbe manner herein of tax. provi~ed, and at such intervals as may be prescribed·
(2) A registered hotelier furnishing return as required by sub-section (1) of section 10, shall first pay into a Government treasury, in the prescribed manner, whole of the amount of tax due from him according to such return.
/
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THE ASSAM GAZETrE, EXTRAORD~~ARY APRIL 21, 1989 415
(3) A registered hotelier furnishing a · revised return in. accordance with sub-section (2) of section 10, which revised return shows that a larger amount of tax than already paid is payable, :shall first pay into a Government treasury the extra amount of tax. ·
(4) (a) The amount of tax-
(i) due when returns have been furnished without full payment thereof, or
(b) the amount of penalty levied under sec- tion 15, or ·
(c) the sum (if any) forfeited to the State Government under section 15,
shall be paid by the hotelier or the person liable therefor into a Government treasury by such date as may be specified in a notice issued by the assessing officer for this purpose, being a date not earlier than thirty days from the date of service of the notice : ·
Provided that, · the a~sessing officer may, . m respect of any particular hotelier or person, and for reasons to be recorded in .writing, allow him to pay the tax, interest or penalty (if any) or the sum forfeited, by instalments.
( 5) Any tax, penalty or interest or sum forfeited; which remains unpaid after the date specified in the notice for payment, and any instalment not duly paid, shall be recoverable as an arrear of land revenue.
(6) Notwithstanding anything· contain€d in this Act or in any other law for the time being in force, where any sum collected by ' a person by way of tax in contravention of section 11, is forfeited to the State Government under section 15 and is recovered from him, such payment or recovery sha 11 · discharge him of the liability to refund the sum t.o the person from whom it was so collected.
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416 THE ASSAM GAZETTE. EXTRAORDINARY APRIL 21 , 1989
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/
A refund of such sum or any part thereof can be claimed from Government by the person from whom it was realised by way of tax, provided that an application for such claim is ma.de by him in writing in the prescribed form to the assessing officer, within one ye::i.r 1rom the date of the order of forfeiture. On receipt of any such application, the assessing officer shall hold such· inquiry as he deems fit, ?.nd if he is satisfied that the ch>.im is v
Rounding off 17. The amount of tax, penalty, interest, com- t he tax etc. •t• fi th bl ' posi ion money, · ne or any o er sum paya e under the provisions of this Act, shall be rounded off . to tLe nearest rupee and, for this purpose,
where such amount contains a part of a rupee
consisting of paise, then, if such part is fifty
paise or more, it shall be increased to one rupee, and if such part is less than fifty, paise, it shall be jgnored:
Offences and
penalties.
r
Provided that, nothing in this section shall
apply for the purpose of collection by the hotelier of any amount by way of tax under this Act.
18. ( 1) Whoever, knowingly furnishes a false return shall, on conviction, be punished-
(i) in case where the amount of tax, which could have been evaded if the false return bad been accepted as true, exceeds Rs· 10,000 with rigorous imprisonment for a term which shall not be less than six months but which may extend to three years and with fine ;
(ii) in any ·other case, with rigorous impri- sonment for a term which shall not be less than three months but which may extend to _one year and with fine.
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T'H.E ASSAM GAZETI'E, :EXTRAORDINARY, APRIL'1, 1989 417 f '))
\'"" Whoever, knowingly keeps false account of the receipts in contravention of sec- tion 13, shall, on conviction, be punished with rigorous imprisonment for a term
which shall not be less than three months but which may extend to one year and
with fine.
(3) Whoever-
(i) wilfully attempts, in any manner whatso- ever, to evade any tax leviable under this Act. or
I
(ii) wilfully attempts, m any manner what- soever. to evade any payment of any tax or penalty or irterest under this Act, shall, on conviction.' be punished- (b)
r-) ~ J
' ' ',a; .
in case where the amount involved ex- ceeds Rs. 50,000 during a period of half- year, with rigorous imprisonment for a term which shall .not be less than six months but · which may extend to th1'ee years and with fine;
in ariy other case, with rigorous impri- sonment for a term which shall not be less than three months but which may extend to one year and with fine. Whoever aids or abets any person . in commission of any act specified in sub- ' sections (1) to (3), shall, on conviction, be punished with rigorous imprisonment which shall not be less than three months but which may extend to one year and with fine. · ·· ·
Whoever-
carries on business withou_t being registered in wilfol contravention of section 6, or
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418 THE Ass'AM GAZETrt EX'TRAOROINARY, APRIL 21, 1989
(b) fails, without suffici~nt cause; to furnish any information required by section 8, or
(c) fails, without sufficient cause, to furnish · any return as required by section 10, by the date and in the manner prescribed, or
(d) contravenes, witliout rea~onable cause, any of the provisions of section 11, or ( e) fails, without sufficient cause, to issue a bill or cash ' memorandum as required under section 12, or
(f) fails, without sufficient cause, when direc- ted under section 13, to keep any account or rec~rd, in accordance with such direc- tion, or
(g) voluntarily 0 bstructs any officer making inspection or search or seizure, shall, on conviction, be punished with imprison- ment for a term ·which may extend to one year and with fine. '
(6) Whoever commits any of the acts specified m sub-sections (1) to (5) and the offence is a con-
. tinuing one undtr any of · the provisions of these sub-sections, shall, on conviction, be punished with a dally fine of. not less than rupees' one hundred during the period of the continuance of the offence, in addition to the punishment provided under this section. '
(7) Notwithstanding anything contained in sub· sections (1) to (6). no person shall be proceeded against un
(8) No prosecution for an offence under this Act shall be instituted in respect of the same facts on which a penalty has been , imposed by the · assessing officer under any provisions of this Act. Powerto 19. (lJ The State Government may, by notifi·
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THE AS:::Al\.1 Gi'iZETT.h; ~XTRAORD.iNARY A.1-'RJL 21, 1%9 419 Government may make rules f c r all or anv of tle following matters, namely :- ~
(a)
(b)
the manner of payment cf tax ;
the form in which accounts and regis-
ters shall be maintained by a hotelier ;
(c) any other matter which is required or allowed by this Act to be prescribed.
(3) The power to make rules, except on the first occasion of the exercise thereof, shrJl be sub- ject to the condition of the rules being made after previous publication.
Power ~o 20· If any difficulty arises in giving effect to remove d1ffi- h · · f h. A S G culties. t e prov1s1ons o t is ct, the tate overnment may, by general or special order, do anything not
inconsistent with such provision which appears to
it to be necessary or expedient for the purpose
of removing the difficulty.
A. RAHM.\N,
Secretary to the Govt. of Assam,
Legislative Department.
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OUWAliATl.-Ptlntcd sDd Pahlilhed by ~be Dv. Director (P), Directorate of Ptg and ~ •• A•arr, Gawabati-21 (Ex-Gazette) No. 97-l,110-500-21·4·19t9.
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