PART - V

Luxury Tax Act, 1988

Sec.		Page
1.	Short title, extent and commencement		1
2.	Definitions		1
3.	Incidence of taxation		2
4.	Charges and rate of tax		2
5.	Liability of firms as hoteliers		3
6.	Certain provisions of Sales Tax Act, to apply		3
7.	Assessment, collection, etc. of tax		3
8.	Registration		3
9.	Power to exempt		4
10.	Power to make rules		4

Luxury Tax Rules, 1988

Rule		Page
1.	Short title		5
2.	Definitions		5
3.	Maintenance of accounts		5
4.	Furnishing of returns		5
5.	Payment of tax		6
6.	Form of order of assessment		6
7.	Form of notice of demand		6
8.	Grant of registration certificate		6

*Forms prescribed under Luxury Tax Rules

Form			Page
	I	Basic information of accommodation and charges		6
	II	Daily account of occupancy of rooms and Collection of tax		7
	III	Monthly abstract of collection and payment of tax		8
	IV	Return		8
	IV-A	Challan		*
	V	Order of assessment/penalty		*
	VI	Notice of demand for payment of tax/penalty		*
	VII	Application for grant of registration certificate		9
	VIII	Registration Certificate		*

Luxury Tax Act, 1988

(No. 13 of 1988)

[Received the assent of the Governor on the 26th May 1988; assent first published in the Madhya Pradesh Gazette dated 31st May 1988.]

An Act to levy tax on luxuries provided in hotels and lodging houses in the State of Madhya Pradesh.

Be it enacted by the Madhya Pradesh Legislature in the Thirty-ninth Year of the Republic of India as follows :

Sec. 1 : Short Title, extent and commencement

(1) This Act may be called the Madhya Pradesh Hotel Tatha Vas Grihon Me Vilas Vastuon Par Kar Adhiniyam, 1988.

(2) It extends to the whole of Madhya Pradesh.

(3) It shall come into force on [1]such date as the State Government may, by notification, appoint.

Sec. 2 : Definitions

(1) In this Act, unless the context otherwise requires,-

(a) Business includes the activity of providing residential accommodation and any other service in connection with or incidental or ancillary to such activity of providing residential accommodation, by a hotelier for monetary consideration;

(b) Concessional rate in relation to a luxury provided in a hotel means a rate lower than the normal rate fixed for such luxury by the hotelier or lower than that fixed by any Government authority, or under any law for the time being in force;

(c) Hotel includes a residential accommodation, a lodging house, an inn, a public house or a building or part thereof where residential accommodation is provided in the course of business;

(d) Hotelier means the owner of the hotel and includes the person who for the time being is incharge of the management of the hotel;

(e) Luxury provided in a hotel means accommodation and other services provided in a hotel, the rate of charges for which, including the charges for air-conditioning, telephone, television, radio, music, entertainment, extra beds and the like is sixty rupees [2][...........] per day or more, but does not include the supply of food and drinks where such supply is separately charged for;

(f) Person includes any company or association or body of individuals whether incorporated or not, and also a Hindu undivided family, a firm, a local authority, a State Government and the Central Government;

(g) Place of business includes an office, or any other place which a hotelier uses for the purpose of his business or where he keeps his books of accounts;

(h) Receipt means the amount of monetary consideration received or receivable by a hotelier or by his agent for any luxury provided in a hotel but shall not include the tax payable under this Act and collected separately by the hotelier;

(i) Registered hotelier means a hotelier registered under this Act;

[3][(j) Vanijyik Kar Adhiniyam means the Madhya Pradesh Vanijyik Kar Adhiniyam 1994 (No. 5 of 1995);]

(k) Turnover in relation to any period means the aggregate of the amount of receipts received or receivable by a hotelier in respect of the luxuries provided by him in a hotel.

(2) All those expressions which are used but are not defined in this Act and are defined in the [4][Vanijyik Kar Adhiniyam] shall have the meaning assigned to them in that Act.

Sec. 3 : Incidence of taxation

(1) There shall be levied a tax on the turnover and such tax shall be payable by a hotelier in accordance with the provisions of this Act.

(2) If a person other than the owner (including part-owner) is for the time being in-charge of the hotel, then such person and the owner (including part-owner) shall jointly and severally by liable to pay the tax.

[5]Sec. 4 : Charges and rate of tax

(1) The tax payable by a hotelier under this Act shall be charged at the following rates, namely :

Where the charge for luxury provided in a hotel per day,-

(a)	is less than sixty rupees	Nil
(b)	is sixty rupees or more but does not exceed one hundred and fifty rupees	5 per cent of the turnover
(c)	is more than one hundred and fifty rupees.	10 per cent of the turnover

(2) Where, in addition to the charges for luxury provided in a hotel, service charges are levied and appropriated by the hotelier and not paid to the staff, then such charges shall be deemed to be the part of the charges for luxury provided in the Hotel.

[6][(3) The tax shall be levied and collected at the rates specified in sub-section (1), on the charges actually paid to the hotelier for such luxury ]

(4) The tax shall not be levied and payable in respect of the turnover for supply of food and drinks, where they are not separately charged for and on the sale of which the hotelier is liable to pay tax under the Madhya Pradesh [7][Vanijyik Kar Adhiniyam, 1994 (No.5 of 1995).]

Sec. 5 : Liability of firms as hoteliers

Where a hotel is owned, managed or run by a firm, the firm and each of the partners of the firm shall jointly and severally be liable to pay tax under this Act :

Provided that where any partner retires from the firm he shall be liable to pay the tax, penalty, interest or any other amount payable under this Act remaining unpaid at the time of his retirement, and any tax due up to the date of his retirement, even if assessment of tax, or levy of penalty or interest is made at a later date.

[8][Sec. 6 : Certain provisions of Sales Tax Act, to apply

Subject to the provisions of this Act and the rules made thereunder Sections 3, 26, 27, 28,29, 30, 31, 32, 33, 38, 39, 40, 42, 43, 45, 46, 47, 49,50, 51, 52, 53, 54, 55, 56, 60, 61, 62, 63, 64, 65, 66, 67, 69, 70, 71, 72, 73, 74, 75, 76, 77 and 80 of the Vanijyik Kar Adhiniyam, and the rules, orders and notifications issued thereunder shall mutatis mutandis apply to a hotelier in respect of tax, interest or penalty levied and payable under this Act as if those sections were mutatis mutandis incorporated in this Act and the rules, orders and notifications issued under those sections were mutatis mutandis issued under the relevant sections as so incorporated in this Act.]

Sec. 7 : Assessment, collection, etc. of tax

Subject to the provisions of this Act, and the rules made thereunder the administration of this Act in so far as it relates to levy, assessment and collection of tax from hoteliers shall vest in the authorities specified in Section 3 of the [9][Vanijyik Kar Adhiniyam,] and accordingly the authorities for the time being empowered to assess, reassess, collect and enforce the payment of tax under the Vanijyik Kar Adhiniyam, shall assess, reassess, collect and enforce the payment of tax including any penalty or other amount payable by hotelier under this Act as if the tax or penalty or any other amount payable by such hotelier under this Act or under the provisions of the Vanijyik Kar Adhiniyam, as made applicable under Section 6 to hoteliers in relation to tax levied under this Act is a tax or penalty or any other amount payable under that Act and for this purpose they may exercise all or any of the powers conferred upon them by or under that Act.

Sec. 8 : Registration

(1) Every hotelier liable to pay tax under this Act shall obtain registration certificate from the appropriate [10][Commercial Tax Officer] in such manner and form as may be prescribed.

(2) Every hotelier required to obtain a registration certificate shall within sixty days from the date of commencement of this Act or if he was not carrying on business on that date shall within thirty days of his becoming liable to pay tax, apply for grant of a registration certificate.

(3) Where a hotelier required to obtain a registration certificate under sub-section (1) fails to apply for the same within the time specified in sub-section (2), the appropriate [11][Commercial Tax Officer] may, after giving him a reasonable opportunity of being heard, direct him to pay by way of penalty a sum not exceeding five thousand rupees, subject to a minimum of five hundred rupees.

(4) A registration certificate granted on application made within the period specified in sub-section (2) shall be valid from the date of liability. A registration certificate granted on an application made after such period shall be valid from the date of application.

(5) The provisions of [12][Section 22 of the Vanijyik Kar Adhiniyam ]and the rules made thereunder so far as they relate to the amendment and cancellation of registration certificates granted under that Act shall mutatis mutandis apply to the registration certificates granted under this section.

Sec. 9 : Power to exempt

The State Government may, by notification, and subject to such restrictions and conditions as may be specified therein exempt whether prospectively or retrospectively in whole or in part any hotelier or class of hoteliers from the payment of tax under this Act.

Sec. 10 : Power to make rules

(1) The State Government may make rules to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, the State Government may make rules, prescribing-

(a) the manner and form in which registration certificate shall be obtained under sub-section (1) of Section 8;

(b) the form in which the returns shall be filed;

(c) the form and the manner in which and the period before which tax shall be paid;

(d) the form in which the order of assessment shall be passed;

(e) the form in which notice of demand shall be issued.

(3) All rules made under this section shall be laid on the table of the Legislative Assembly.

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Luxury Tax Rules, 1988

[13]In exercise of the powers conferred by Section 10 of the Madhya Pradesh Hotel Tatha Vas Grihon Me Vilas Vastuon Par Kar Adhiniyam, 1988 (No. 13 of 1988), the State Government hereby makes the following rules, namely :

Rule 1 : Short title

These rules may be called the Madhya Pradesh Hotel Tatha Vas Grihon Me Vilas Vastuon Par Kar Niyam, 1988.

Rule 2 : Definitions

In these rules, unless the context otherwise requires,-

(a) Act means the Madhya Pradesh Hotel Tatha Vas Grihon Me Vilas Vastuon Par Kar Adhiniyam, 1988 (No. 13 of 1988);

(b) Form means a form appended to these rules;

(c) Sales Tax Rules means the Madhya Pradesh General Sales Tax Rules, 1959;

(d) Words and expressions used but not defined in these rules and defined in the Sales Tax Act or the Sales Tax Rules shall have the meaning assigned to them in the Sales Tax Act or the Sales Tax Rules, as the case may be.

Rule 3 : Maintenance of accounts

(1) Every registered hotelier shall maintain-

(a) Information in Form I of residential accommodation and the tariff therefor in respect of his hotel;

(b) Daily account in Form II of occupation of residential accommodation in his hotel and collection of tax therefor, and

(c) Monthly abstract in Form III of collection and payment of tax.

(2) The registered hotelier shall maintain a separate bound register for each of the forms specified in sub-rule (1) and shall get each of the pages of such register serially numbered, sealed or certified by an officer duly authorised by the Commissioner in this behalf.

Rule 4 : Furnishing of returns

Every registered hotelier liable to pay tax under Section 3 of the Act shall furnish to the Sales Tax Officer within whose jurisdiction his place of business is situated, a return in Form IV for every quarter of the year within ten days of the expiry of such quarter. The return shall be accompanied by a copy of challan in proof of the payment of tax payable according to such return :

Provided that a separate return for the period commencing from the date of coming in force of the Act and ending with the last day of the quarter in which the Act comes into force shall be furnished within fifteen days of the expiry of the said quarter.

Rule 5 : Payment of tax

The tax payable under the Act shall be paid [14][by challan in Form IV-A in quadruplicate] into a Government treasury under the head “0023-Hotel Receipt Tax 101 Collection from Hotels which are companies/102 collection from Hotels which are not companies-800-other receipts”.

Rule 6 : Form of order of assessment

The order of assessment shall be in Form V.

Rule 7 : Form of notice of demand

The notice of demand shall be in Form VI.

Rule 8 : Grant of registration certificate

(1) An application for obtaining a registration certificate under sub-section (1) of Section 8 of the Act shall be made in Form VII.

(2) A Hotelier having places of business within the jurisdiction of more than one Sales Tax Officer shall make an application for grant of registration certificate separately to each such Sales Tax Officer in respect of each such places of business.

(3)(a) On receipt of an application for grant of registration certificate, such Sales Tax Officer shall, if, he is satisfied that the application is in order, and the necessary particulars have been furnished by the hotelier, grant to the hotelier a registration certificate in Form VIII.

(b) If such Sales Tax Officer finds that the application is not in order or that all necessary particulars have not been furnished he shall direct the hotelier to furnish such additional information as may be considered necessary. After considering the additional information such Sales Tax Officer shall grant to the Hotelier a registration certificate in Form VIII.

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FORM - I

[See rule 3 (1) (a)]

Basic information of accommodation and charges

1.	Name of Hotel	....................................................
2.	Address of the Hotel	....................................................
3.	Name of the proprietor	....................................................
4.	Name of the Managing Director/Manager	....................................................
5.	Registration certificate Number	.....................................................
6.	Accommodation capacity and charge

Room		No. of beds	Charge
Type Single/Double/ Suite/others	Number
(1)		(2)	(3)
Total

Place................	Signature...............................
Date.................	Name and Designation...........

The above statements are true to the best of my knowledge and belief.

	Signature...............................
Place................	Name.....................................
Date.................	Designation............................

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FORM - II

[See rule 3 (1) (b)]

Daily account of occupancy of rooms and Collection of tax

(Note : Separate entry should be made in respect of each person)

S. No.	Name of guest	Permanent Address	Age
(1)	(2)	(3)	(4)

Nationality	Class	Rate of charges for accommodation for residence per day	Arrival date, Time
(5)	(6)	(7)	(8)

Departure date, Time	Period of stay of each guest	Total amount of charges for accommodation for residence.	Charges paid by guest.
(9)	(10)	(11)	(12)

No. of guests who occupied the room or accommodation in hotel	No. and date of bill / cash memo	Amount of tax collected	Remarks
(13)	(14)	(15)	(16)