Are you a Resident of India and searching for Luxury Tax. Then take a look at this article so that you can find all about Luxury Tax. Here for the convenience of the taxpayer, we have included that What is Luxury Tax, State wise Luxury Tax Rates, Luxury Tax Forms, and how to file Luxury Tax Return Online. So no need of surfing different sites you can get all about Taxes in our website.
What is Luxury Tax?
Apart from Income Tax, Service Tax, VAT this Luxury Tax is included in the Budget. Luxury Tax is an Indirect Tax and is Statutory in Nature. This Tax is levied mostly on the bills of Hotels, Spas, and Specific Resorts. And more over Luxury Tax is charged on the room rent and on the overall stay charges of the Resort, Hotel, or Spa but not on the Food and Beverages served. Luxury Tax is Chargeable to Tax under State Luxuries Act. For the clear explanation let us take an example.
Explanation: For the clear explanation let us take an example. If one person went to a Resort with his family and Stayed at that place for 2 days. Then the Hotel management provided them all the accommodation including with food in their hotel. While vacating from the Resturant the person has charged a bill including with luxury tax. In this bill, the luxury tax is applicable only for the facilities provided at the hotel means on the accommodation but not the Food items. According to Section 4B of the Luxury Tax Act, ‘Luxuries‘ means Services or Commodities that are specified in the Schedule ministering to Comfort, Enjoyment or Pleasure to necessities of life. So even though the person doesn’t like the accommodation as per Luxury Tax Act and State Luxury Tax Rate he has to pay the Tax.
Applicability of Luxury Tax
These applicabilities may also vary as per State Luxuries Act. So let us take one State for example. In the State of Karnataka, these are the applicabilities of Luxury Tax.
- The Luxuries provided to the members of a club like Deposit, Fee, Donation or any other such charges as per the State Rates.
- The charges collected on luxuries provided by the hotels for the residents or customers like Beauty Parlour, Health Club, Swimming pool, or to the conference hall. These charges are taxed as separately.
- This tax is charged if luxuries provided in a hospital are more than Rs. 1000/- per day. The rate of tax is 8% of such charges.
Not Applicable to:
The Luxury Tax in the State of Karnataka is not applicable if the items are sent out of the State as per Karnataka Sales Tax Act of 1957.
Luxury Tax Rate
The Luxury Tax Rates are not constant as they the rates are not implemented by the Central Government. The Tax Rates may vary from 3% to 12% to 13% per annum as per the Individual State Laws. In some cases, if the congregational are used for exhibitions, weddings then they may charge extra Luxury Tax. Here are the Luxury Tax Rates for some of the States. Check the Rates below and download the forms to file Luxury Tax Return.
Luxury Tax in Karnataka
The Rate of Luxury Tax in Karnataka for Congregational halls and Health Clubs from 8% to 10%. Luxury Tax is charged at the rate of 4% for room rents if the amount is between Rs. 500/- to Rs. 1000/- per night. The tax of 8% is charged if rent exceeds Rs. 1000/- to Rs. 2000/- per night. If the rent crosses Rs. 2000 per night then the Luxury Tax is charged at the Rate of 12%. For more click on the links below.
Luxury Tax in Goa
In Goa if the room rent is below or equals to Rs. 500/- per night then it is exempted from tax. If the rent is above Rs. 500/- and below Rs. 2000/- then the tax charged is at the rate of 5% per annum. If the rent exceeds over Rs. 2000/- but below Rs. 5000/- then the luxury tax charged is 8% per annum. If the rent is more than Rs. 5000/- per night then the tax charged is 12%.
Luxury Tax in Delhi
In Delhi depending upon the room tariff, the luxury tax charged is either 5% or 10% if the amount exceeds Rs. 700/- and more per night. The tax charged at 3% for GYM Facilities, Health Clubs, and Spas per annum.
Luxury Tax in Rajasthan
In Rajasthan except Heritage Hotels, the Grand Hotels are taxed to Luxury Tax at the rate of 10% if the rate is Rs. 300/- per day. The luxury tax is charged at 8% per annum if they are not mentioned in the previous category. In off season of the tourism the luxury tax charged is at the rate of 50% for specific months of the year.
Luxury Tax in Tamil Nadu
In Tamil Nadu, if the room rent is between Rs. 200/- to Rs. 500/- luxury tax charged is at the rate of 5% per annum. The tax charged is 10 % if the rents between Rs. 500/- to Rs. 1000/- per annum. If the amount of rent exceeds Rs. 1000/- per day then the luxury tax charged is 12.5% per annum.
Luxury Tax Return Online
The taxpayer to pay Luxury Tax Return Online should log on to the Commercial Tax Department of the particular State. Luxury Tax for the State may also fall under Commercial Tax Department and or Excise Department. The Assessee have to check whether it is under Excise or under Commercial Department and file the Luxury Tax Return. Download the Luxury Tax Return Form and fill the form and submit at the tax office to make offline payment or else visit the website and fill the form and click on submit and make the payment through online. Luxury Tax Return is also filed on the monthly basis that is at the time of VAT Tax, Entertainment Tax. For quarterly payment of tax, it should be supposed to file by the last date of the month following the assessment month.