No: 10 Dated: Nov, 01 1996

Delhi Tax on Luxuries Act, 1996

(Delhi Act No. 10 of 1996)

An Act to provide for the levy and collection of a tax on luxuries and for matters connected therewith in the National Capital Territory of Delhi.

Be it enacted by the Legislative Assembly of the National Capital Territory of Delhi in the Forty Seventh year of the Republic of India as follows:-

1. Short title, extent and commencement:- (1) This Act may be called the Delhi Tax on Luxuries Act, 1996.

(2) It extends to the whole of the National Capital Territory of Delhi.

(3) It shall come into force on such date as the Government may, by notification in the Official Gazette, appoint in this behalf and different dates may be appointed for different provisions of this Act.

2. Definition:- In this Act, unless the context requires otherwise:—

(a) "appointed day" means the day appointed by the Government under sub-section (3) of section 1;

(aa) "banquet hall" means any premises, garden or farm house, or any part thereof where accommodation or space is provided for marriage, reception or functions related therewith, seminar, convention, banquets, party, meeting, or exhibition-cum-sale and such other hall as may be specified by the Commissioner, irrespective of the fact whether on regular or periodical or occasional basis;

(b) "business" includes activity of providing any luxury and any other service in connection with, or incidental or ancillary thereto, for monetary consideration;

(c) "club" includes both an unincorporated and unincorporated association of persons, by whatever name called;

(d) "Commissioner" means the person appointed to be the Commissioner of Luxury Tax for the purposes of this Act and includes an Additional Commissioner, if any, appointed under section 7; 2

(e) "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 proprietor or lower than that fixed by any Government, authority or under law for the time being in force;

(ea) "customer" means an individual or group or company or corporate availing any luxury;

(eb) "establishment" means a banquet hall or a gymnasium/health club or a hotel or a spa where luxury is provided to a customer by way of business;

(f) "Government" means the Government of National Capital Territory of Delhi;

(fa) "gymnasium or health club" means a premises or hall or building or place equipped for gymnastics and other physical exercising equipment(s) for providing facilities and activities such as wellness, aerobics or body building or body sculpting etc.;)

(g) "establishment" includes a residential accommodation, a lodging house, an inn, a club, a resort, a farm house, a public house or a building or part of a building, where a residential accommodation is provided by way of business;

(h) "hotelier" means the owner of the establishment and includes the person who for the time being is in charge of the management of the establishment;

(i) "luxury" means use of goods,, services, property, facilities etc. for enjoyment or comfort or pleasure or consumption by any customer extraordinary to the necessity of life, that is to say:—

(i) accommodation or space provided in a banquet hall which includes air cooling, air conditioning, chairs, tables, linen, utensils and vessels, shamiyana, tent, pavilion, electricity, water, fuel, interior or exterior decoration, music, orchestra, live telecast and the like,

(ii) services provided in a gymnasium or health club, which includes services of trainer or personal trainer, steam, sauna and the like,

(iii) accommodation and other services provided in a hotel, the rate or charges for which, including the charges for air cooling, air conditioning, radio, music, extra beds, television and the like, is seven hundred fifty rupees per room per day or more, whether such charges are received collectively or separately per room per day,

(iv) facilitles or services provided in a spa which includes beauty treatment, manicure, pedicure, facial, laser treatment, massage shower, hydrotherapy, steam bath, saunas or cuisine, medispa and the like;

(j) "person" includes any company, club 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;

(k) "place of business" includes an office, or any other place which is used by a person for the purpose of his business or where he keeps his books of accounts;

(1) " prescribed" means the prescribed under this Act or the rules framed under this Act;

(la) "proprietor" means the owner of an establishment, jointly or severally and includes partners, management, trust, company, firm or anybody who is for the time being in charge of the management of the establishment;

(m) "receipt" means the amount of monetary consideration received or receivable by a proprietor or by his agent for any luxury provided in the establishment;

(n) "registered proprietor" means a proprietor registered under section 8 of this Act;

(o) "rules" means rules made under this Act;

(oa) "spa" means a building or part of building or space where facilities or services for beauty treatment or manicure or pedicure or facials or laser treatment or massage or shower or hydrotherapy or steam bath or saunas or cuisine or medispa or the like is provided;

(p) "tax" means the tax levied or leviable on turnover of receipts of an establishment and payable under this Act including any penalty, interest, fine, composition Trioney, sum forfeited or any other charge levied or leviable under this Act; 

(q) "tariff" means the charges levied or leviable by a proprietor for providing any luxufy;

(r) "turnover of receipts" means the aggregate of amount of valuable consideration received or receivable by a proprietor in respect of any luxury;

(s) "year" means the financial year.

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