Jharkhand Taxation on Luxuries in Hotels Act, 2011

No: 21 Dated: Sep, 30 2011

Jharkhand Taxation on Luxuries in Hotels Act, 2011

(Jharkhand Act No. 21, 2011)

    BE it enacted by the Legislature of the State of Jharkhand, In the Sixty Two year of the Republic of India as follows:-

1. Short title, extent and commencement. – (1) This Act may be called the Jharkhand Taxation on Luxuries in Hotel Act, 2011.

(2) It extends to the whole of the State of Jharkhand.

(3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

2. Definitions. – In this Act unless there is anything repugnant to the subject or context. –

(a) ‘Assistant Commissioner’ means an Assistant Commissioner of Commercial Taxes appointed under sub-section (2) of section 4 of the Jharkhand Value Added Tax Act, 2005 ( Jharkhand Act 05, 2006).

(b) ‘Authority’ means an Authority referred in the rules made under this Act;

(c) ‘Commissioner’ means the Commissioner of Commercial Taxes appointed under sub-section (2) of section 4 of the Jharkhand Value Added Tax Act, 2005 ( Jharkhand Act 05, 2006) and includes Additional Commissioner of Commercial Taxes.

(d) ‘Commercial Taxes Officer’ means a Commercial Taxes Officer appointed under sub-section (2) of section 4 of the Jharkhand Value Added Tax Act, 2005 (Jharkhand Act 05, 2006);

(e) ‘Deputy Commissioner’ means a Deputy Commissioner of Commercial Taxes appointed under sub-section (2) of section 4 of the Jharkhand Value Added Tax Act, 2005 (Jharkhand Act 05, 2006);

(f) ‘Hotel’ includes a boarding house, a lodging house, a banquet hall, a marriage hall or a house or a restaurant or any other hall or club or societies or building including any such premises / field / courtyard attached or annexed to; whether open or otherwise, where any room(s) or such place is provided with luxuries therein, to any person on rent or otherwise;

(g) ‘Joint Commissioner’ means a Joint Commissioner of Commercial Taxes appointed under sub-section (2) of section 4 of the Jharkhand Value Added Tax Act, 2005 ( Jharkhand Act 05, 2006);

(h) ‘Luxuries’ means such amenities as are provided in a Hotel to the occupants or hirer of such rooms or suite of rooms or otherwise therein as to carry a rent of rupees two hundred or more per day or part thereof;

(i) ‘Month’ means a calendar month or part thereof;

(j) "Person" includes:-

(i) an Individual;

(ii) a Joint Family;

(iii) a Company;

(iv) a Firm;

(v) an association of persons or a body of individuals; whether incorporated or not and includes persons incharge of a club or society or co-operative societies;

(vi) the Central Government or the Government of Jharkhand or the Government of any other State or Union Territory in India;

(vii) a local Authority or any Authority established under any law;

(k) ‘ Prescribed’ means prescribed by rules made under this Act ;

(l) ‘Proprietor’ in relation to a hotel includes a person who is the owner or for the time being is incharge of its management; whether by any agreement or otherwise.

(m) ‘Quarter’ means the quarter ending on the 30th June, 30th September, 31st December and 31st March;

(n) ‘Rent’ means the aggregate of all charges, by whatever name called, realized from the occupier / hirer of a room in a hotel and includes lodging, boarding or service charges or any other sum charged by the proprietor or all or any of them;

Explanation 1- Where the rate of rent of a room is not charged for occupation alone, and boarding and service charged are included therein then the actual sum realized for each day, or part thereof ( excluding any sum paid for food or drinks) and charges for service and any entertainment and like shall be aggregated and the total shall be deemed to be the rent.

Explanation 2 – Where charges are levied otherwise than on daily basis, then the charges shall be computed as for a day based on the period of occupation of the room for which charges are made.

(o) ‘Room’ includes a suite of rooms, a banquet hall, a marriage hall or house or any other hall or building including any such premises whether open or otherwise or as defined in clause (f) of this section, which is ordinarily hired out as one unit or otherwise;

(p) ‘Tax’ means the tax levied under this Act ;

(q) ‘Tribunal’ means the Tribunal constituted under section 3 of the Jharkhand Value Added Tax Act, 2005 (Jharkhand Act 05, 2006);

(r) ‘Year’ means a financial year.

3. Levy of Tax. – (1) There shall be levied and paid to the State Government a tax on Hotels by the proprietor (s) on the rent, exceeding Rs. 200 per day or part thereof, for a room or suite of rooms provided with luxuries in a hotel at the rate(s), as specified in the schedule appended to this Act.

(2) Notwithstanding anything contained in sub-section (1), the State Government by a notification may amend, alter, add, increase or decrease any rate(s) as specified in the schedule.

Explanation – ‘Day’ for the purpose of this Act shall mean a calendar day, beginning at midnight and part thereof.

4. Compounding of Tax – Notwithstanding anything contained in Section 3 of this Act , the State Government may, subject to such conditions and restrictions as it may specify, by a notification, permit the proprietor of a hotel or class or description of hotels to pay in lieu of tax payable under Section 3, a lump sum amount by way of compounding of tax.

5. Collection of tax by the proprietor. – Every proprietor liable to pay tax under Section 3 shall collect along with rent, the amount of tax payable under the said section, from the person to whom a room along with luxuries is provided by him.

6. Registration. – Every proprietor, who is liable to pay tax under section 3 shall apply for a certificate of registration in the prescribed manner within a month of coming into effect of this Act or within one month from the date he starts providing room along with luxuries in the hotel,

7. Returns. – (1) Every proprietor liable to pay tax under this Act , shall submit a return for every quarter by the twenty fifth day of the month following the quarter in the manner prescribed.

(2) If any proprietor having furnished, returns, under sub-section (1) discovers any omission or error in the returns so filed, he may furnish a revised return without prejudice to Section 12 and 13 before the expiry of the year.

8. Payment of Tax. – The amount of tax payable under Section 3 and Section 4 for which return or revised return has been furnished under section 7 shall be paid by the proprietor to the State Government by the 15th day of the month following for every month and differential amount as per revised return furnished by the end of the related year into the Government Treasury in such manner as may be prescribed.

9. Assessment of Tax – (1) Assessment of the tax payable by a proprietor shall be made after examining the accounts or registers and other evidences as the prescribed authority may require.

(2) In case a proprietor does not furnish any return or fails to produce accounts for assessment as required under sub-section (1), the prescribed authority may, after giving the proprietor a reasonable opportunity of being heard, assess the amount of tax payable by such proprietor, to the best of his judgment.

(3) If the prescribed authority, upon information which has come into his possession, is satisfied that the proprietor has been liable to pay tax under this Act in respect of any period, and has nevertheless failed to apply for registration under section 6 or having so applied failed to comply with any requirement for registration within a reasonable time and for which his application for registration has been rejected such prescribed authority shall, after giving the proprietor an opportunity of being heard, assess the amount of tax to the best of his judgment in respect of such period and shall also impose a penalty which shall be equal to the amount of tax so assessed.

10. Extension of period – The prescribed authority may for the reasons to be recorded in writing extend the date for either filing the return under Section 7 or payment of tax under section 8 or for payment of the assessed tax for a period not exceeding twenty days from the due date.

11. Liability in case of default. – In the circumstance if any proprietor either fails to file return under section 7 or to pay the tax under section 8 or pay the amount of tax assessed or penalty imposed under section 9 within the due or extended date he shall be liable to pay, by way of penalty a sum calculated at the rate not exceeding Rs. twenty for every day of default or an interest at the rate of two and half percentum of the amount of tax due for every month or part thereof whichever is higher.