TAMIL
NADU TAX ON LUXURIES IN HOTELS AND LODGING HOUSES (AMENDMENT) ACT, 1986
Preamble - TAMIL NADU TAX ON LUXURIES
IN HOTELS AND LODGING HOUSES (AMENDMENT) ACT, 1986
THE TAMIL NADU TAX ON
LUXURIES IN HOTELS AND LODGING HOUSES (AMENDMENT) ACT, 1986
[Act No. 37 of 1986]
[4th June, 1986]
PREAMBLE
An Act to amend the
Tamil Nadu Tax on Luxuries in Hotels and Lodging Houses Act, 1981.
BE
it enacted by the Legislature of the State of Tamil Nadu in the Thirty-seventh
Year of the Republic of India as follows:--
Section 1 - Short title and commencement
(1) This Act may be called the Tamil Nadu Tax on
Luxuries in Hotels and Lodging Houses (Amendment) Act, 1986.
(2) It shall come into force on such date as the State
Government may, by notification, appoint.
Section 2 - Amendment of section 2 Tamil Nadu Act 6 of 1981
In
section 2 of the Tamil Nadu Tax on Luxuries in Hotels and Lodging Houses Act,
1981 (Tamil Nadu Act 6 of 1981) (hereinafter referred to as the principal
Act),--
(a) after clause (d), the following clause shall be
inserted, namely:--
"(dd)
'day' means a period not exceeding twenty-four hours for which charges for
accommodation for residence are collected as for a day by a hotel and includes
part of the day for which such charges are collected in full according to the
normal practice followed by it;";
(b) ?for clause
(g), the following clause shall be substituted, namely:--
"
(g) luxury provided in a hotel' means accommodation for residence provided in a
hotel, the rate of charges for which (including charges for air-conditioning,
television, radio, music, extra beds and the like but excluding charges for
food, drink and telephone calls) is fifty rupees or more per room per
day;";
(c) after clause (i), the following clause shall be
inserted, namely:--
"
(i) ' year' means the financial year. ".
Section 3 - Amendment of section 4, Tamil Nadu Act 6 of 1981
In
section 4 of the principal Act,--
(i) for sub-section (1) including the proviso thereto,
the following sub-section and the proviso shall be substituted, namely:--
"(1)
Subject to the provisions of this Act, there shall be levied and collected a
tax on the luxury provided in a hotel in respect of every room under occupation
by any person (to be known as "luxury tax") at the following rates,
namely:--
|
Rate of
tax. |
|
|
(a) Where
the rate of charges for accommodation for residence (including charges for
air-conditioning, television, radio, music, extra beds and the like but
excluding charges for food, drink and telephone calls) is not less than rupees
fifty but less than rupees one hundred per room per day. |
Ten
percentum of such rate. |
|
(b) Where
such rate is not less than rupees one hundred but less than rupees two
hundred per room per day. |
Fifteen
percentum of such rate. |
|
(c) Where
such rate is rupees two hundred or more per room per day. |
Twenty
percentum of such rate. |
Provided
that where such charges are levied otherwise than on daily basis or per room,
then, the charges for determining the liability to tax under this section shall
be computed as for a day and per room, based on the period of occupation of
residence for which the charges are made according to the rules or custom of
the hotel. ";
(ii) ?in
sub-section (2), for the words "into a Government treasury", the
words "into Government account" shall be substituted.
Section 4 - Insertion of new section 4-A in Tamil Nadu Act 6 of 1981
After
section 4 of the principal Act, the following section shall be inserted,
namely:--
"4-A. Intimation of revised rate to the
assessing authority.--
Where
any proprietor intends to revise any rate of charge for any luxury provided in
a hotel, he shall intimate in writing to the assessing authority seven days
prior to the date of giving effect to such revised rates. The proprietor shall
be liable to pay tax at the revised rate after the expiry of seven days from
the date of receipt of such intimation by the assessing authority. ".
Section 5 - Amendment of section 5, Tamil Nadu Act 6 of 1981
(1) In section 5 of the principal Act,--
(2) to sub-section (3), the following proviso shall be
added, namely:--
"Provided
that where luxury provided in a hotel to any person, whether an Indian or a
Foreigner, on tours organised by the Department of Tourism of the Government of
India, or the State Government, is charged at a concessional rate, then tax on
such luxury shall be levied and collected on such concessional rate paid to the
proprietor of the hotel. ".
(3) ?sub-section
(4) shall be omitted.
Section 6 - Amendment of section 6, Tamil Nadu Act 6 of 1981
In
section 6 of the principal Act,--
(i) in sub-section (1), for the words "eight
days", the words " twenty days " shall be substituted;
(ii) in sub-section (3), for the words "shall first
pay into a Government treasury", the words "shall pay into Government
account" shall be substituted;
(iii) after sub-section (4), the following sub-section
shall be added, namely:--
"
(5) If no return is furnished in respect of any month the assessing authority
shall, after making such enquiry as he considers necessary and after giving the
proprietor an opportunity of being heard, determine the tax payable for the
month. If the assessing authority has reason to believe that the return, if
any, furnished incorrect or incomplete, he shall issue a notice to the proprietor
calling upon him to produce his accounts, registers, records or other documents
or evidence and prove the correctness and completeness of the return at a time
and place to be specified in the notice. If the proprietor fails to comply with
the terms of the notice or if the return is found to be incorrect or incomplete
after such verification, the assessing authority shall after giving the
proprietor an opportunity of being heard, determine to the best of its
judgment, the tax payable for the month. The tax payable as determined under
this sub-section shall be paid in the prescribed manner within the prescribed
time.".
Section 7 - Substitution of new section for section 7, Tamil Nadu Act 6 of 1981
For
section 7, the following section shall be substituted, namely:--
"7, Assessment and collection of tax.--
(1) After the completion of the year, the assessing
authority shall, after such enquiry as it considers necessary, satisfy itself
that the returns furnished under section 6 are correct and complete and finally
assess the proprietor and determine the tax payable for the year. If no return
is filed or if the assessing authority has reason to believe that the returns
filed are incorrect or incomplete, the assessment shall be made in the manner
and after following the procedure prescribed in sub-section (5) of section 6.
Any assessment made under this section shall be without prejudice to any
penalty or prosecution for an offence under this Act.
(2) Where for any reason the whole or part of any
luxury provided in a hotel has escaped assessment or has been assessed at a
rate lower than the rate at which it is assessable, the assessing authority
may, at any time within a period of five years from the expiry of the year to
which the tax relates, assess or, as the case may be, re-assess the tax due
after making such enquiry as it may consider necessary and after giving the
proprietor a reasonable opportunity to show cause against such assessment or,
as the case may be, reassessment.
(3) In making an assessment or re-assessment under
sub-section (2), the assessing authority may, if it is satisfied that the
escape from assessment is due to wilful non-disclosure of any facts in the
return or in the accounts, registers or records or other documents maintained
by the proprietor and produced before such authority, direct the proprietor to
pay, in addition to the tax assessed under sub-section (2), a penalty not
exceeding one and half times the tax so assessed:
Provided
that no penalty under this sub-section shall be imposed unless the proprietor
affected has a reasonable opportunity of showing cause against such imposition.
(4)
The
powers under sub-sections (2) and (3) may be exercised by the assessing
authority even though the original order off assessment, if any, passed in the
matter had been the subject matter of an appeal or revision.
(5)
In
computing the period of limitation under this section the time during which the
proceedings for assessment or re-assessment remained stayed under the orders of
a Civil Court, or other competent authority shall be excluded.
(6) In computing the period of limitation for
assessment or re-assessment under this section, the time during which any
appeal or other proceeding in respect of any other assessment or re-assessment
is pending before the High Court or the Supreme Court, involving a question of
law having direct bearing on the assessment or re-assessment in question, shall
be excluded.".
Section 8 - Insertion of new sections 7-A and 7-B in Tamil Nadu Act 6 of 1981
After
section 7 of the principal Act, the following sections shall be inserted,
namely:--
"7-A. Liability of firms.--
(1) Where any firm as proprietor is liable to pay any
tax or other amount under this Act, the firm and each of the partners of the
firm shall be jointly and severally liable for such payment.
(2) Where a partner of a firm liable to pay tax or any
amount under this Act retires he shall, notwithstanding any contract to the
contrary, be liable to pay the tax or other amounts remaining unpaid at the
time of his retirement and any tax or other amount due upto the date of
retirement, though unassessed.
7-B. Liability to tax of partitioned Hindu family,
dissolved firm, etc.--
Where
a proprietor is a Hindu undivided family, firm or other association of persons
and such family, firm or association is partitioned, or dissolved, as the case
may be,--
(a) the tax payable under this Act by such family, firm
or association of persons for the period upto the date of such partition or
dissolution shall be assessed as if no such partition or dissolution had taken
place and all the provisions of this Act shall apply accordingly; and
(b) every person who was at the time of such partition
or dissolution, a member or partner of the Hindu undivided family, firm or
association of persons and the legal representative of any such person who is
deceased shall, notwithstanding such partition or dissolution, be jointly and
severally liable for the payment of the tax, or other amount payable under this
Act by such family, firm or association of persons, whether assessment is made
prior to or after such partition or dissolution.".
Section 9 - Amendment of section 8. Tamil Nadu Act 6 of 1981
In
section 8 of the principal Act, in clause (b), for the words "into a
Government treasury", the words "into Government account" shall
be substituted.
Section 10 - Amendment of section 9, Tamil Nadu Act 6 of 1981
In
section 9 of the principal Act,--
in
sub-section (1),--
(i) in clause (b), for the words "into a
Government treasury", the words "into Government account" shall
be substituted.
(ii) in the proviso, the expression "the assessing
authority or" shall be omitted.
Section 11 - Insertion of new section 9-A in Tamil Nadu Act 6 of 1981
After
section 9 of the principal Act, the following section shall be inserted,
namely:--
"9-A. Registration.--
(1) Every proprietor of a hotel where the rate of
charges for accommodation for residence per room per day is not less than
rupees forty shall get it registered under this Act. For this purpose, he shall
make an application to such authority in such manner and within such period as
may be prescribed. Each application shall be accompanied by a fee of one
hundred rupees.
(2) If the prescribed authority is satisfied that the
application is in order, it shall register the application and issue a
certificate in the prescribed form. The certificate shall take effect from such
date as may be prescribed.
(3) Every hotel which is in existence on the date of
coming into force of the Tamil Nadu Tax on Luxuries in Hotels and Lodging
Houses (Amendment) Act, 1986, where the rate of charge for accommodation per
room per day is not less than rupees forty shall be registered under this
section within such period as may be prescribed.".
(4) A certificate issued under sub-section (2) shall be
valid for a year and shall be renewed from year to year on payment of the fee
specified in sub-section (1)."
Section 12 - Insertion of new section 19-A in Tamil Nadu Act 6 of 1981
After
section 19 of the principal Act, the following section shall be inserted,
namely:--
"19-A. Prohibition of disclosure of
particulars produced before authorities.--
(1) All particulars contained in any statement made,
return furnished or accounts, registers, records or documents produced under
the provisions of this Act or in any evidence given or affidavit or deposition
made in the course of any proceeding under this Act or in any record of any
proceeding relating to the recovery of a demand prepared for the purposes of
this Act shall be treated as confidential and shall not be disclosed.
(2) Nothing contained in sub-section (1) shall apply to
the disclosure of any such particulars?
(i) for the purpose of investigation of, or prosecution
for an offence under this Act or under the Indian Penal Code (Central Act XLV
of 1860) or under any other law for the time being in force; or
(ii) to any person enforcing the provisions of this Act
where it is necessary to disclose the same to him for the purposes of this Act;
or
(iii) occasioned by the lawful employment under this Act
of any process for the recovery of any demand; or
(iv) to a civil court in any suit to which the
Government are party and which relates to any matter arising out of any
proceeding under the Act; or
(v) occasioned by the lawful exercise by a public
servant of his powers under the Indian Stamp Act, 1899 (Central Act II of 1899)
to impound an insufficiently stamped document; or
(vi) to an officer of?
(a) the Government of India; or
(b) the Government of any State or Union Territory in
India with which an arrangement for disclosure on a reciprocal basis has been
entered into by the Government of the State; or
(vii) to an office of any department other than the
Commercial Taxes Department of the State Government after obtaining?
(a) the permission of the Assistant Commissioner of
Commercial Taxes of the district where such particulars are to be furnished by
an officer subordinate to the Assistant Commissioner of Commercial Taxes; and
(b) the permission of the Commissioner of Commercial
Taxes where such particulars are to be furnished by Assistant Commissioner of
Commercial Taxes or any higher authority:
Provided
that such particulars shall be furnished under clause (vii) only in exceptional
cases and that any officer obtaining such particulars shall keep them as
confidential and use them only in the lawful exercise of the powers conferred
by or under any enactment. ".