The Punjab government has passed an ordinance called “THE PUNJAB TAX ON LUXURIES ORDINANCE, 2008″ w.e.f. 28-11-2008, which has levied luxury tax on hotels and banquet halls in punjab. Every Proprietor, required to be registered under this ordinance otherwise he will not be able to provide luxury in his hotel or banquet hall. Some question related to luxury tax are as under.
What is a luxury tax?
“luxury” means the services, rendered for the purpose of enjoyment, comfort or pleasure and luxury tax is which levied by government on this luxury provided by hotels and banquet halls.
What is luxury provided in a banquet hall?
“luxury provided in a banquet hall” means the luxury, provided by way of accommodation or space in a banquet hall on payment of a sum, not less than five thousand rupees per occasion or such other sum, as may be specified by the State Government by notification, which shall include the charges for air cooling, air conditioning, chairs, tables, linen, utensils and vessels, shamiana, tent, pavilion, electricity, water, fuel, interior or exterior decoration, music orchestra, live telecast or other amenities whether such charges are received collectively or separately, but excluding the charges for food and drinks.
How to calculate of Rs. 5000 for luxury provided in a banquet hall?
While calculating the sum of five thousand rupees or any other specified sum, the charges for providing the aforesaid amenities or any other such like amenities, shall be taken into account collectively, even if charges for any of the amenities are received separately by the proprietor or by any other person on his behalf.
What is luxury provided in a hotel?
“luxury provided in a hotel” means a luxury, provided by way of accommodation for lodging in a hotel on payment of a sum, not less than two hundred rupees per day or such other sum, as may be specified by the State Government by notification, which shall include the charges for air-conditioning, telephone, fax, internet, television, radio music, health club, beauty parlour, swimming pool, conference hall or other amenities whether such charges are received collectively or separately, but excluding the charges for food and drinks.
How to calculate of Rs. 200 for luxury provided in a hotel?
While calculating the sum of two hundred rupees or any other specified sum, the charges for providing the aforesaid amenities or any other such like amenities, shall be taken into account collectively, even if changes for any of the amenities are received separately by the proprietor or by any other person on his behalf.
Which Points to kept in mind when calculating luxury tax?
Where any service charges, other than the charges for luxury, provided in a hotel or a banquet hall, as the case may be, are collected and appropriated either wholly or partly by the proprietor, and are not paid to the staff, such charges shall be deemed to be the part of the charges for luxury.
Where luxury in a hotel or banquet hall, as the case may be, is provided to any person free of cost or at a concessional rate, the tax shall be levied at the normal rate for such luxury.
Where a luxury was to be provided in a hotel at a normal rate to certain specified number of persons, but actually the same was availed of by more than the specified persons, then tax shall also be levied on the extra persons at the same rate.
How much tax i will pay?
The Government of Punjab has levied tax @8% on luxuries provided in Hotels;
@10% on luxuries provided by Banquet Hall/Marriage Palaces.
How i will registered?
Forms and Format of application is not available till today (9-12-2008), but last date of registeration is 25-12-2008.
What is period of return and payment of tax?
Every proprietor shall make monthly payment of tax within a period of fifteen days from the date of expiry of the month, and shall furnish to the Commissioner or any other officer, authorised by him, a statement in the prescribed form. Such statement shall be accompanied by a satisfactory proof of payment of the full amount of due tax. A statement without such proof of payment, shall not be entertained.
The first installment falls on 15th of January, 2009.
Some questions will be available on my next post after contact concerned department and after coming forms from concerned department.
Download luxury tax forms punjab
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