West Bengal Entertainments And Luxuries (Hotels And Restaurants) Tax Act, 1972
No: 21 Dated: Jul, 25 1972
THE WEST BENGAL ENTERTAINMENTS AND LUXURIES (HOTELS AND RESTAURANTS) TAX ACT, 1972
West Bengal Act XXI of 1972
An Act to provide for the imposition of taxes on entertainments and luxuries in hotels and restaurants.
Whereas it is expedient to provide for the imposition of taxes on entertainments and luxuries in hotels and restaurants and for matters connected therewith ;
It is hereby enacted as follows :-
1. Short title, extent and application. - (1) This Act may be called the West Bengal Entertainments and Luxuries (Hotels and Restaurants) Tax Act, 1972.
(2) It extends to the whole of West Bengal.
(3) It shall apply in the first instance only to Calcutta but the State Government may, by notification in the Official Gazette, apply the provisions of this Act to any other area specified in such notification.
2. Definitions. - In this Act. unless the context otherwise requires,-
(a) "Calcutta" means the area described in Schedule I to the Calcutta Municipal Corporation Act, 1980;
(aa) "Commissioner" means the Commissioner of Agricultural Income-tax appointed under sub-section (2) of section 21 of the Bengal Agricultural Income-tax Act, 1944 ;
(b) "entertainment" means any exhibition, performance, amusement, game, sport, cabaret, dance or floor show provided in any hotel or restaurant ;
(c) "entertainment tax" means tax payable under section 3 of this Act ;
(ca) "hotel" means a building or part of a building or any place where any activity or business is carried on in providing lodging or boarding or any kind of accommodation, with or without supply of food, drinks or refreshments, to the members of the public on payment or for any consideration with the object of making profit ;
(d) "luxury" means provision for-
(i) air-conditioning through air-conditioner or central air-conditioning or any other mechanical means, or
(ii) air-cooling through air-cooler,
Provided in any of the rooms, or any part of a building, constituting a hotel or restaurant;
(e) "luxury tax" means tax levied under section 4 of this Act;
(f) "prescribed" means prescribed by rules made under this Act;
(g) "proprietor" in relation to a hotel or restaurant includes the person who for the time being is in charge of management of a hotel or restaurant;
(h) "restaurant" includes an eating-house.
3. Liability for entertainment tax. - (1) An entertainment tax shall be payable by every person who is admitted into or enters any place, within either a hotel or restaurant, which is provided with luxury, where an entertainment is provided, and such tax shall be calculated at the rate of 30 per centum of the total sum paid or payable by such person for all the services including food and drink supplied to him and also including any fee for admission into such place of entertainment:
Provided that where payment is charged for admission to the place of entertainment, the entertainment tax under this section shall in no case be less than 60 per centum of such payment for admission to the place of entertainment ;
Provided further that the State Government may, by notification published in the Official Gazette, direct that entertainment tax shall be payable-
(a) by such class of persons, or
(b) in respect of entertainment provided in such class of hotels or restaurants,
at such rate lower than that fixed under this section, and subject to such restrictions and conditions, as may be specified in the said notification ;
Provided also that the State Government may, by notification published in the Official Gazette, direct that subject to such conditions and restrictions as may be specified therein, no entertainment tax shall be payable-
(a) by such class of persons, or
(b) in respect of entertainment provided in such class of hotels or restaurants and in such area or areas.
as may be specified therein.
(2) The entertainment tax shall be recoverable from the proprietor.
4. Liability for luxury tax. - There shall be charged, levied and paid to the State Government a luxury tax by the proprietor of every hotel and restaurant in which there is provision for luxury and such tax shall be calculated-
(a) in the case of a restaurant at the rate of an annual sum of rupees three hundred for every ten square metres or part thereof in respect of so much of the floor area of restaurant which is provided with luxury, and
(b) in the case of a hotel at such rate not exceeding twenty-five per centum of the daily charges realised or realisable, as the case may be, for an occupied room provided with the luxury as may be notified by the State Government in the Official Gazette:
Provided that subject to such restrictions and conditions as may be prescribed, no luxury tax shall be charged, levied and paid under clause (b) in respect of daily charges realised or realisable for any occupied room provided with luxury from such class of persons as may be prescribed.
4A. Payment of entertainment tax, luxury tax and returns. - The entertainment tax under section 3 recoverable from, and the luxury tax under section 4 payable by, a proprietor, shall be deposited into a Government Treasury or the Reserve Bank of India, and returns shall be furnished by him to such authority, in such form, in such manner, and within such time, as may be prescribed.
4B. Interest payable by the proprietor. - (1) If the amount of entertainment tax payable under section 3 or the luxury tax under section 4 is not paid within the time prescribed under section 4A, the proprietor shall pay a simple interest at the rate of two per centum for each English calendar month of default from the first day of such month next following the prescribed date up to the month prior to the month in which such tax is fully paid or up to the month prior to the month of assessment under section 5 in respect of such period, whichever is earlier, upon so much of the amount of tax payable by him according to returns where returns are furnished, or according to such assessment where returns are not furnished, as remains unpaid at the end of each month of default.
(2) Where a proprietor fails to make a payment of any tax payable after assessment by the date specified in the notice issued under subsection (6) of section 5 for payment thereof, he shall pay a simple interest at the rate of two per centum for each English calendar month of default from the first day of such month next following the date specified in the demand notice up to the month preceding the month of full payment of such tax or up to the month preceding the month of commencement of proceeding under section 7, whichever is earlier, upon so much of the amount of tax payable by him according to such notice as remains unpaid at the end of each such month of default.
(3) Where as result of an order under section 5A, section 5B or section 5C, the amount on which interest as payable under this section has been modified, the interest shall be payable on the modified amount.
(4) A proprietor liable to pay interest under sub-section (1) or subsection (2), shall pay such interest in such manner and by such date or dates as may be prescribed.
(5) Notwithstanding anything contained in sub-section (1) or subsection (2), no interest shall be payable in such cases or under such circumstances and subject to such conditions, if any, as may be prescribed.
4C. Interest payable by the State Government. - The State Government shall, in the prescribed manner, pay a simple interest at the rate of two per centum for each English calendar month of delay in making refund of tax paid in excess which arises out of an order passed under section 5A, section 5B or section 5C, from the first day of such month next following the expiry of three months from the date of passing of such order up to the month preceding the month in which the refund is made upon the amount of tax refundable to him according to such order.
4D. Rounding off of the amount of tax payable for calculating interest. - In calculating the interest payable under section 4B or section 4C, the amount of tax in respect of which such interest is to be calculated shall be rounded off to the nearest multiple of one hundred rupees and for this purpose where such amount contains a part of one hundred rupees, if such part is fifty rupees or more, it shall be increased to one hundred rupees and, if such part is less than fifty rupees, it shall be ignored.
5. Assessment of tax and determination of interest. - (1) If any proprietor, who is liable to pay tax under section 3, fails to furnish return in respect of any period or if the prescribed authority is not satisfied that the return furnished for any period is correct or complete, he shall assess to the best of his judgment the amount of entertainment tax due from such proprietor and, in making such assessment, shall give such proprietor a reasonable opportunity of being heard.
(2) If any proprietor, who is liable to pay tax under section 4, fails to furnish return in respect of any period or if the prescribed authority is not satisfied that the return furnished for any period is correct or complete, he shall proceed to assess to the best of his judgment the amount of luxury tax due from such proprietor and, in making such assessment, shall give such proprietor a reasonable opportunity of being heard.
(3) Where the prescribed authority is satisfied that any proprietor is liable to pay interest under section 4B, he shall, in such manner as may be prescribed, determine the amount of interest payable by such proprietor.
(4) No assessment under sub-section (1) or sub-section (2) shall be made after the expiry of two years from the end of the period in respect of which the assessment is made or from the commencement of section 7 of the West Bengal Taxation Laws (Second Amendment) Act, 1990, whichever is later.
(5) In computing the time limited by sub-section (4) for making any assessment under sub-section (1) or sub-section (2), the period during which the prescribed authority is restrained from commencing or continuing any proceeding for such assessment by an order of any Court shall be excluded.
(6) Where any tax is due in consequence of any assessment made under sub-section (1) or sub-section (2) or interest is due in consequence of any determination under sub-section (3), the prescribed authority shall serve upon the proprietor such notice as may be prescribed.
(7) The amount of tax assessed under sub-section (1) or sub-section (2), less the sum, if any, already paid by the proprietor in respect of the said period, shall, together with any interest determined under subsection (3) that may be directed to be paid under the provisions of subsection (6), be paid in the manner and within the date as may be specified in a notice by the prescribed authority for this purpose, and the date to be so specified shall not be less than thirty days from the date of service of such notice.