KERALA
TAX ON LUXURIES IN HOTELS AND LODGING HOUSES ACT, 1976 THE KERALA TAX ON LUXURIES IN HOTELS AND
LODGING HOUSES ACT, 1976 [Act No. 32 of 1976] [11th November, 1976] An Act to provide for the levy and collection
of a tax on luxuries provided in hotels and lodging houses. Whereas
it is expedient to provide for the levy and collection of a tax on luxuries
provided in hotels and lodging houses; Be it
enacted in the Twenty-seventh Year of the Republic of India as follows:-- (1)
This Act may be called the Kerala Tax on
Luxuries in Hotels and Lodging Houses Act, 1976. (2)
It extends to the whole of the State of Kerala. (3)
It shall be deemed to have come into force on
the 1st day of July, 1976. In
this Act, unless the context otherwise requires,-- (a)
"appellate authority" means an
appellate authority appointed under sub-section (2) of section 3; (b)
"assessing authority" means an
assessing authority appointed under sub-section (1) of section 3; (c)
"Board of Revenue" means the Board
of Revenue constituted under the Kerala Board of Revenue Act, 1957; (d)
"company" means a company as
defined in section 3 of the Companies Act, 1956; (e)
"hotel" means a building or part of
a building where residential accommodation is by way of business provided for a
monetary consideration and includes a lodging house. Explanation.--A
guest house run by the Government or a company or a corporation established by
or under any law or any other agency shall be deemed to be a hotel within the
meaning of this clause; (f)
"luxury provided in a hotel" means
accommodation for residence and other amenities and services provided in a hotel,
the rate of charges for which (exclusive of charges for food, drink and
telephone calls) is fifteen rupees per day or more; (g)
"prescribed" means prescribed by
rules made under this Act; (h)
"proprietor", in relation to a
hotel, includes the person who for the time being is in charge of the
management of the hotel. (1)
The Government may, by notification in the
Gazette, appoint such officers as they think fit to be assessing authorities
for the purposes of this Act and may assign to them such local limits as the
Government may think fit. (2)
The Government may, by notification in the
Gazette, appoint such officers as they think fit to be appellate authorities
for the purposes of this Act and may assign to them such local limits as the
Government may think fit. (3)
All authorities and officers employed in the
execution of this Act shall observe and follow the orders, instructions and
directions of the Board of Revenue: Provided
that no such orders, instructions or directions shall be given so as to
interfere with the discretion of the appellate authority in the exercise of its
appellate functions. (1)
Subject to the provisions of this Act, there
shall be levied and collected a tax in respect of any luxury provided in a
hotel (hereinafter called the 'luxury tax"). (2)
The luxury tax shall be payable by the person
residing in a hotel, at the following rates, namely:-- (a) Where the
rate of charges for accommodation for residence and other amenities and
services (exclusive of charges for food, drink and telephone calls) is
fifteen rupees or more but does not exceed twenty-five rupees per day per
person Five per centum
of such rate (b) Where such
rate exceeds twenty-five rupees but does not exceed fifty rupees per day per
person Seven and a half
per centum of such rate (c) Where such
rate exceeds fifty rupees per day per person Ten per centum
of such rate: Provided
that, where such charges are levied otherwise than on daily basis or per person,
then, the charges for determining the liability to tax under this section shall
be computed as for a day and per person based on the period of occupation of
the residence for which the charges are made and the number of persons actually
occupying or permitted to occupy according to the rules or custom of the hotel. (3)
The luxury tax shall be collected by the
proprietor and paid within such period and in such manner as may be prescribed,
into a Government treasury. (4)
In computing the luxury tax, a fraction of a
rupee which is not a multiple of five paise shall be rounded off to the next
higher multiple of five paise. (1)
Every proprietor liable to pay luxury tax
under this Act shall submit, a return in the prescribed form to the assessing
authority within eight days after the end 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 arrival and departure, the amount of charges recovered
from them for accommodation and other amenities and services, together with
such other information as may be prescribed. (3)
Every such return shall he accompanied by a
receipt for payment on Government account into a Government treasury of the
full amount of the luxury tax for the period to which the return relates. (4)
Every return shall be verified in the
prescribed manner. (1)
On receipt of a return under section 5, the
assessing authority shall assess the luxury tax payable in respect of the
period to which the return relates, and if the amount has not already been paid
as aforesaid, it shall cause a notice to be served upon the proprietor
concerned requiring him to pay the amount assessed within ten days of the
service of the notice. (2)
If the proprietor fails to submit in due time
the return referred to in section 5, the assessing authority shall, after
giving him a reasonable opportunity of being heard, assess to the best of its
judgment, the amount of luxury tax payable and the provisions of sub-section
(1) in respect of notice shall apply as if such assessment has been made on the
basis of a return furnished by such proprietor, (3)
If the luxury tax is not paid within the
prescribed period, the assessing authority may levy a penalty equal to a sum
not exceeding the amount of the luxury tax payable under this Act: Provided
that no penalty shall be levied under this sub-section unless the proprietor
has been given a reasonable opportunity of being heard. Any
person aggrieved by an order of assessment made or a penalty levied under
section 6 may, within thirty days from the date of receipt of the order, apply
to the appellate authority for the annulment or modification of the assessment
or penalty; and on such application, the appellate authority may, subject to
such rules of procedure as may be prescribed, confirm, annul or modify the
assessment or penalty. (1)
The Board of Revenue may, either suo motu or
on application, call for and examine the record and proceedings of any order
made by the assessing authority and pass such order thereon as it thinks just
and proper: Provided
that no application under this sub-section shall be entertained if it is not
made within a period of ninety days from the date on which the order in
question was received by the applicant: Provided
further that before rejecting any application under this sub-section, the Board
of Revenue shall record reasons for such rejection. (2)
No order shall be passed under sub-section
(1) which is likely to affect any person adversely, unless such person has been
given a reasonable opportunity of being heard. (3)
Where a person could have appealed under
section 7 and no appeal has been filed by him, no proceedings under this
section shall be entertained upon the application of such person. Notwithstanding
anything contained in the Kerala Court Fees and Suits Valuation Act, 1959 (10
of 1960), an appeal preferred under section 7 or an application for revision
made under section 8 shall bear a court fee stamp of such value as may be
prescribed. Any
luxury lax or penalty recoverable under this Act and remaining unpaid may he
recovered as an arrear of public revenue due on land. A
notice under the provisions of this Act may be served by post or by delivering
or tendering it to the person to whom it is addressed or to his agent or in
such other manner as may be prescribed. (1)
The assessing authority shall have access at
all reasonable times to a hotel or place of business of any person liable to
collect or pay the luxury tax under this Act. (2)
The assessing authority may, at any time,
with or without notice to any person referred to in sub-section (1), examine
his working records and accounts and take copies of, or extracts from, any of
the said records or accounts for purposes of testing the accuracy of any return
or for informing itself as to the particulars regarding which information is
required for the purposes of this Act or any rule made thereunder. (1)
The assessing authority may, for the purposes
of this Act, by notice, require any proprietor? (a)
to produce or cause to be produced before it
any accounts, registers, records or other documents; or (b)
to furnish or cause to be furnished any other
information relating to the hotel, and such proprietor shall comply with such
requisition. (2)
The assessing authority may, at any
reasonable time,-- (a)
enter any hotel or place of business or any
vehicle or vessel of the proprietor; and (b)
inspect any accounts, registers, records or
other documents relating to his hotel or hotels. (3)
If the assessing authority has reasons to
believe that a proprietor is trying to evade the collection or payment of the
luxury tax, it may, for reasons to be recorded, enter and search? (a)
any hotel or place of business of the
proprietor; or (b)
any other place where the proprietor is
keeping or is reasonably believed to be keeping any accounts, registers,
records or other documents relating to his hotel or hotels: Provided
that no residential accommodation (not being a hotel-cum-residence) shall be
entered into or searched, unless the assessing authority is specially
authorised in writing by the Board of Revenue to search that accommodation. Explanation.--For
the purposes of clause (b), 'place' includes any godown, building, vessel,
vehicle, box or receptacle. (4)
All searches under this section shall, so far
as may be, be made in accordance with the provisions of the Code of Criminal
Procedure, 1973 (Central Act 2 of 1974). (5)
The assessing authority making the inspection
or search may seize such accounts, registers, records or other documents as it
considers necessary, and on such seizure shall grant the proprietor a receipt
of the things seized. (6)
The accounts, registers, records or other
documents seized under sub-section (5) shall not be retained by the assessing
authority beyond a period of thirty days from the date of seizure except with
the permission of such authority as may be specified by the Government in this
behalf, unless they are required for any prosecution under this Act: Provided
that the authority specified by the Government under this sub-section shall not
give permission to retain such accounts, registers, records or other documents
beyond a period of forty-five days from the date of the seizure. (7)
The power conferred by sub-sections (3) and
(5) shall include? (a)
the power to break open any box or receptacle
or place or the door of any premises in which any accounts, registers, records
or other documents of the proprietor are reasonably believed to be kept: Provided
that the power to break open the door of any premises shall be exercised only
after the owner or any other person in occupation of the premises fails or
refuses to open the door on being called upon to do so; (b)
the power to seal any box or receptacle,
godown or building, where any accounts, registers, records or other documents
are or are reasonably believed to be kept, if the owner or any other person in
occupation leaves the premises or refuses to open the box or receptacle, godown
or building, or is not available, and then to break open such box, receptacle,
godown or building, on the authority of an authorisation in writing by the
Board of Revenue; (c)
the power to search any person who has got
out of, or is about to get into, or is in, any place referred to in clause (a)
or clause (b) of sub-section (3) or any vessel or vehicle of any proprietor, if
the assessing authority has reasons to suspect that such person has secreted about
his person any accounts, registers, records or other documents. The
assessing authority, the appellate authority and the Board of Revenue shall,
for the purposes of this Act, have the same powers as are vested in a civil
court under the Code of Civil Procedure, 1908 (Central Act 5 of 1908), when
trying a suit, in respect of the following matters, namely:-- (a)
enforcing the attendance of any person and
examining him on oath or affirmation; (b)
requiring the discovery and production of
documents; (c)
receiving evidence on affidavit; (d)
issuing commissions for the examination of
witnesses. (1)
If any proprietor satisfies the assessing
authority that the amount of the luxury tax paid by him exceeds the amount of
such tax payable by him under this Act, he shall be entitled to a refund of
such excess. (2)
The appellate authority in the exercise of
its appellate powers or the Board of Revenue in the exercise; of its revisional
powers, if satisfied to the like effect, shall cause a refund to be made by the
assessing authority of any amount found to have been wrongly paid or paid in
excess. No
claim to any refund of the luxury tax under section 15 shall be admitted,
unless it is made within three years from the date of the order of assessment
or, where an appeal has been preferred or where there has been a revision,
within three years from the date of the order in appeal or revision, as the
case may be. (1)
Any person who? (a)
knowingly submits an untrue return or fails
to submit a return as required by this Act or the rules made thereunder; or (b)
wilfully acts in contravention of any of the
provisions of this Act or the rules made thereunder for the contravention of
which no express provision for punishment is made by this Act, shall be
punishable with fine which may extend to one thousand rupees. (2)
Any person who? (a)
prevents or obstructs inspection, entry,
search or seizure by the assessing authority; or (b)
fraudulently evades the payment of luxury tax
or other amount due from him under this Act, shall be punishable with
imprisonment for a term which may extend to six months, or with fine which may
extend to one thousand rupees, or with both. (3)
A person shall not be proceeded against under
this section except at the instance of the assessing authority. (1)
Where an offence under this Act has been
committed by a company, every person who at the time 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 be 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, if he proves that the offence was committed without his
knowledge or that he had exercised all due diligence to prevent the commission
of such offence. (2)
Notwithstanding anything contained in
sub-section (1), where any offence under this Act has been committed by a
company and it is proved that the offence has been committed with the consent
or connivance of, or is attributable to any neglect on the part of, any
director, manager, secretary or other officer of the company, such director,
manager, secretary, or other officer shall be deemed to be guilty of that
offence and shall be liable to be proceeded against and punished accordingly. Explanation.--For
the purposes of this section,-- (a)
"company" means any body corporate
and includes a firm or other association of individuals; and (b)
"director", in relation to a firm,
means a partner in the firm. No
suit shall lie in any civil court to set aside or modify any assessment made
under this Act and no prosecution, suit or other legal proceeding shall lie
against the Government or any authority or officer for anything in good faith
done or intended to be done under this Act. (1)
The Government may, by notification in the
Gazette, make rules for carrying into effect the provisions 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 returns shall be submitted
under section 5, further information to be furnished with the returns and the
manner in which the returns shall be verified; (b)
the form of notice to be served under section
6 and the procedure to be followed for assessment and collection of the
assessed dues; (c)
the procedure to be followed by the appellate
authorities: (d)
the value of court fee stamp on an appeal or
application for revision; (e)
the other manner in which a notice may be served; (f)
the procedure for inspection and taking
copies of records and accounts; (g)
the fees to be paid for any of the matters
provided in this Act; and (h)
any other matter which has to be, or may be,
prescribed. (3)
Every rule made under this section shall be
laid, as soon as may be after it is made, before the Legislative Assembly,
while it is in session, for a total period of thirty days, which may be
comprised in one session or in two successive sessions, and if, before the
expiry of the session in which it is so laid or the session immediately
following, the Legislative Assembly makes any modification in the rule or
decides that the rule should not be made, the rule shall thereafter have effect
only in such modified form or be of no effect, as the case may be: so however
that any such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule. If any
difficulty arises in giving effect to the provisions of this Act, the
Government may, as occasion may require, by order do anything not inconsistent
with the provisions of this Act which appears to them necessary for the purpose
of removing the difficulty. (1)
The Kerala Tax on Luxuries in Hotels and
Lodging Houses Ordinance, 1976 (5 of 1976), is hereby repealed. (2)
Notwithstanding such repeal, anything done or
any action taken under the said Ordinance shall be deemed to have been done or
taken under this Act.
Preamble - KERALA TAX ON LUXURIES IN HOTELS
AND LODGING HOUSES ACT, 1976PREAMBLE