|As an attempt to mobilise a new source of
revenue, the Govt. of Delhi decided to explore an
hitherto untapped source of revenue namely the
Hospitality Industry. The Luxury Tax was introduced w.e.f
from 1.11.1996 on various hotels, lodging houses, clubs etc.
"Luxury Provided in hotel" means accommodation and
other services provided in
a hotel, the rate or charges for which including the
charges of air conditioning, telephone, radio, music,
extra beds and the like is Rs. 500/- per room per day or more; but does
not include the supply of food, drinks or other services which is separately
"hotel" includes a residential accommodation, a
lodging house, an inn, a club, a resort, a farm house, a
public house or a building or part of a building, where a
residential accommodation is provided by way of business.
Rate of Tax
The luxury tax is levied on the turnover of
receipts of a hotelier at the notified rate not exceeding 15%.
The Govt. may notify different rate(s) from time to time and
for the different classes of hotels. Rate notified time to time
by the Govt. are as under :-
from 1.11.96 on declared tariff.
from 1.10.99 on actual/charged tariff.
from 10.8.2000 on actual/charged tariff.
from 2.11.2001 on actual/charged tariff till 30.09.2002.
from 1.10.2002 on actual/charged tariff.
from 1.12.2002 to 31.03.2003 on actual/charged tariff.
from 01.04.2003 on actual/charged tariff.
No hotelier liable to
pay tax under the Act, shall conduct or cause to be
conducted the activity of providing residential
accommodation for monetary consideration unless he
possess a certificate of registration as provided by the
Act. The hotelier who is liable to pay the tax may
collect it from the customers.
Where a business is
owned, managed or run by a firm, then the firm and each
of the partners of the firm shall be jointly and
severally liable for payment of tax.
Every hotelier required
to possess a certificate of registration shall apply in
the prescribed form to the Commissioner within thirty
days from the date on which the hotelier first becomes
liable to pay the tax.
HOW TO GET REGISTERED
Hotels that come under the purview of Delhi Tax on Luxuries Act, 1996
should get themselves registered in the Luxury Tax Department.
(1) Every application for the registration
under section 8 shall be made in Form 4 by a hotelier.
(a) Within a period of thirty days from the
appointed day if he was liable to pay the tax under the provisions of
the Delhi Tax on Luxuries Act, 1996 before the appointed day; and
(b) In any other case, within a period of
thirty days from the date on which such hotelier first becomes liable
to pay the tax.
(2) A hotelier who has places of business
within the jurisdiction of different registering authorities, shall
make an application for registration to such authority in whose
jurisdiction his chief place of business is located.
requirements :- The following are the basic requirements / documents, a
hotelier has to submit to get itself registered :-
- Form 1, 4 and 7
- Photograph of
person/ partners. Application form shall be duly signed and
- Proof of
ownership/possession of property by the hotelier
(any document indicating proof of possession e.g.
rent, agreement, rent-receipt etc.)
- Proof of
residential addresses as furnished in para-2 of
Form 4 - by way of a copy of the ration card /
voters identity card / driving licence /
passport / telephone bill / electricity bill /
affidavit / any other documentary proof.
Form No. 1
Form No. 4
Form No. 7
Form No. 8
OF CERTIFICATE OF REGISTRATION
The Department has to
see that each and every relevant document and relevant
information, as required, has been furnished by the
applicant for the grant of certificate of registration.
The certificate of registration shall be issued in form
No. 5. If a hotelier applying for registration is a
firm, Hindu undivided family, body corporate or
association of individuals or Government, The certificate
of registration shall be issued in the name of such firm,
family, body corporate, association or Government as the
case may be.
Where the hotelier has
two or more places of business within the National
Capital Territory of Delhi, the registering authority in
whose jurisdiction the chief place of business lies,
shall issue to the hotelier one copy of certificate of
registration for each additional place of business
specified in the application for registration.
registered under the Act is required to pay tax on quarterly basis i.e
the period ending 31st March, 30th June, 30th September
& 31st December by the end of succeeding month respectively alongwith
the returns, except in case of major hotels who are required to pay the
tax on monthly basis (the return shall be filed before the 15th
of the next month). In
order to quantify the tax due from the hotelier in respect of the year
during which he is liable to pay tax, assessment is carried out by the
APPLICATION OF TAX FROM "DECLARED RATE" TO
The Delhi Tax on
Luxuries Act, 1996 which came into force wef 01.11.96 has
been introduced to tap on luxuries provided in the
Hotel/Guest House. The tax was applicable on the declared tariff at the time of inception of the Act, according to
which, hotelier had to pay tax on the declared (printed)
tariff irrespective of the tariff which was actually charged. The Act
was amended vide notification dated 16.9.99 and the Luxury Tax was
actually made applicable on the declared tairff.
However, the exemption to diplomatic
missions as mentioned below, was allowed vide notification dated
1. Persons with
diplomatic status in Embassies of other countries in India.
2. Guest of the
coming from abroad for conferences.
representatives and delegates of United Nations and its affiliated
organizations such as UNICEF, WHO, UNESCO, ILO, etc.
The liability or the
onus of applying for registration under the Luxury Act
lies completely on the hotelier. All the hoteliers who
have not registered themselves, must do so at the earliest. Whoever carries on business without being
registered in willful contravention of Section 8 of Delhi Tax on
Luxuries Act, 1996, shall on conviction,
be punished with imprisonment for a term which may be
extended to one year with fine.
other specific details, kindly contact the
Luxury Tax Officer
Excise, Entt. & Luxury Tax Department,
L-Block, I.P. Estate,
New Delhi-110 002
Phone : 23370946
Email : email@example.com