FAQ ‘S ON LUXURY TAX

1) What is luxury Tax?

Ans. It is a tax levied on luxuries provided by a hotelier including accommodation and other services like air conditioners, telephone , television radio, music and the like .

2) what do you mean by accommodation provided for commercial purpose?

Ans. Accommodation provided for commercial purpose means a building or part of a building where accommodation is provided for holding trade fairs, exhibitions, demonstration, sales promotions, conferences, etc, and includes open space with or without tents or any enclosure erected for giving on hire space for holding the activities herebefore mentioned.

3) what is hotel?

Ans. Hotel includes a residential accommodation, a lodging house, an inn, a public house or a building or part of building, a club, a boat or any place where a residential accommodation is provided by way of business.

4) what is meant by luxuries?

Ans. The term ‘Luxuries’ means or services specified in the schedule, ministering the enjoyment, comfort or pleasure extraordinary to necessities of life.

5) What do you mean by luxury provided in hotel?

Ans luxury provided in hotel means accommodation and other services provided in a hotel, including air conditioning, telephone, television radio,music,entertainment,extra beds and the like and all services other than casions, water sports, boat/river cruises and the supply of food and drinks.

6) what is receipt?

Ans. Receipt means the amount of monetary consideration received or receivable by a hoteiler or propietor or stockist or by his agent for any luxury provided in a hotel.

7)How is tax levied under the Act?

Ans Tax is levied on the turnover of receipts of a hotelier .

AS PER SCHEDULE III

(see sub-section (2) of section 5)

Sr.No.	Turnover of Receipts	Rate of Tax
1.	2.	3.
(a)	Where the charge for luxury provided in a hotel is not exceeding Rs. 200/- per day.	Nil
(b)	Where the charge for luxury provided in a hotel is exceeding 200 rupees but does not exceed Rs. 1500/- per day.	5%
©	Where the charge for luxury provided in a hotel is exceeding Rs. 1500/- but not exceeding Rs. 3000/- per day	8%
(d)	Where the charges for luxury provided in a hotel is exceeding Rs. 3000/- and above per day.	10%

Note: Where the luxuries provided in a hotel are under Time Share Agreement or under package Deal agreement or under any such system and where in the facility of availing residential Accommodation during the given period in a year is allowed upon a lump sum payment, shall be paid in accordance with the rate provided for at clause (b) i.e @ 5%.

8) What are the amount of Registration charges/renewal charges Hotelier has to pay?

Ans. The amount of Registration charges/renewal charges Hotelier has to pay under the Act is as per schedule II . As under

[ SCHEDULE II ]

[See section 9(2) and 9A)

Category of hoteliers	Amount of registration charges /renewal charges
(1)	(2)
(1) For hotels having upto 10 rooms including rent back accommodation, tourist home and any other accommodation required to be covered under the Goa Registration of Tourist Trade Act, 1982. (Act 10 OF 1982))	Rs. 1000/-
(2) For hotels having rooms in excess of 10 but upto 50 including rent back accommodation, tourist home and any other accommodation required to be covered under the Goa Registration of Tourist Trade Act, 1982. (Act 10 of 1982)	Rs. 4000/-
(3) For hotels having rooms in excess of 50 but up to 100 including rent back accommodation, tourist home and any other accommodation required to be covered under the Goa Registration of Tourist Trade Act, 1982. (Act 10 of 1982)	Rs. 7500/-
(4) For hotels having rooms in excess of 100 including rent back accommodation, tourist home and any other accommodation required to be covered under the Goa Registration of Tourist Trade Act, 1982. (Act 10 of 1982)	Rs. 10,000/-

9) What is the time limit to pay tax?

Ans. Hoteliers are required to pay tax in the appropriate government treasury under challis in form 9 as follows

Monthly luxury tax exceeding Rs.1 lakh

Monthly within 15 days from the expiry of the month.

Monthly luxury tax exceeding Rs.10000 Upto Rs. 1.00lakh.

Monthly within 30 days

from the expiry of the month

Monthly tax liability upto Rs 10,000

(i)Quarterly for the quarters of june, September and December within 30 days from the end of the quarter

ii)Monthly for January February and march within 30 days from the end of the months.

(10) When returns are to be filed?

Ans. A registered hotelier is required to filed quarterly return within 30 days from the end of the quarter. Monthly Challans to the quarter are to be attached to the quarterly returns.

In case any error or omission is discovered in the return filed, the same can be revised within three months from the end of the quarter to which the return relates.

It is to be noted that during the first year of registration, every hotelier is required to file monthly returns along with the tax paid challans on or before the last day of the following month.

11) When is penalty imposed under the act?

Ans Penalty is imposed for following offences:

1) Fails to apply for registration under section 9.

2) Carries on business without registration.

3) Fails without reasonable cause to comply with any notices in respect of the proceeding under section 14, 16 or 27 or 33.

4) Fails to disclose any transaction of receipts or fails to furnish return by the prescribed dates.

5) Fails to show in the return the appropriate liability to pay tax.

6) Fails to disclose all material facts necessary to make correct quantification of tax.