Hotel-Receipts Tax Act, 1980
No: 54 Dated: Dec, 09 1980
THE HOTEL-RECEIPTS TAX ACT, 1980
ACT NO. 54 OF 1980
An Act to impose a special tax on gross receipts of certain hotels.
BE it enacted by Parliament in the Thirty-first Year of the Republic of India as follows:—
1. Short title and extent.—(1) This Act may be called the Hotel-Receipts Tax Act, 1980.
(2) It extends to the whole of India.
2. Definitions.—In this Act, unless the context otherwise requires,—
(1) “assessee” means a person by whom hotel-receipts tax or any other sum of money is payable under this Act and includes—
(a) every person in respect of whom any proceeding under this Act has been taken for the assessment of his chargeable receipts or of the amount of refund due to him or of the chargeable receipts of any other person in respect of which he is assessable or of the amount of refund due to such other person;
(b) every person who is deemed to be an assessee in default under any provision of this Act;
(2) “assessment” includes reassessment;
(3) “assessment year” means the period of twelve months commencing on the 1st day of April every year;
(4) “Board” means the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 (54 of 1963);
(5) “chargeable receipts” means the total amount of all charges referred to in section 6, computed in the manner laid down in section 7;
(6) “hotel” includes a building or part of a building where residential accommodation is, by way of business, provided for a monetary consideration;
(7) “hotel-receipts tax” or “tax” means the tax chargeable under the provisions of this Act;
(8) “Income-tax Act” means the Income-tax Act, 1961 (43 of 1961);
(9) “prescribed” means prescribed by rules made under this Act;
(10) “room charges” means the charges for a unit of residential accommodation in a hotel and includes the charges for—
(a) furniture, air-conditioner, refrigerator, radio, music, telephone, television, and
(b) such other services as are normally included by a hotel in room rent, but does not include charges for food, drink and any services other than those referred to in sub-clauses (a) and (b);
(11) all other words and expressions used herein but not defined and defined in the Income-tax Act shall have the meanings respectively assigned to them in that Act.
3. Application of the Act.—(1) Subject to the provisions of sub-section (2) and sub-section (3), this Act shall apply in relation to every hotel wherein the room charges for residential accommodation provided to any person at any time during the previous year are seventy-five rupees or more per day per individual.
Explanation.—Where the room charges are payable otherwise than on daily basis or per individual, then the room charges shall be computed as for a day and per individual based on the period of occupation of the residential accommodation for which the charges are payable and the number of individuals ordinarily permitted to occupy such accommodation according to the rules and custom of the hotel.
(2) Where a composite charge is payable in respect of residential accommodation and food, the room charges included therein shall be determined in the prescribed manner.
(3) Where—
(i) a composite charge is payable in respect of residential accommodation, food, drink and other services, or any of them, and the case is not covered by the provisions of sub-section (2), or
(ii) it appears to the Income-tax Officer that the charges for residential accommodation, food, drink or other services are so arranged that the room charges are understated and the other charges are overstated, the Income-tax Officer shall, for the purposes of sub-section (1), determine the room charges on such reasonable basis as he may deem fit.