What is the Luxury Tax?
It was introduced i.e. from 1.11.1996, which shall be
levied @ 10% on various hotels, Inns, lodging house, clubs etc.
Providing “Luxury” meaning thereby accommodation and
other service, excluding food and beverages, provided in a hotel, the rate or
charges for which including the charges of air conditioning, telephone, radio,
music, extra beds and the like is Rs 500/- per room per day or more.
How can one get registration for Luxury Tax?
Basic requirements
Hotels that come under the purview of Delhi Tax pm
Luxuries Act, 1996 should get it registered in the Luxury Tax Department.
·
Basic
requirement/documents, a hotelier has to submit:
·
Form 1, 4
and 7 duly completed
·
Photograph
of person signing and verifying the application / of all partners in case of a
firm.
·
Proof of
ownership/possession of property by the hotelier.
·
Proof of
residential addresses as furnished in para-2 of Form 4 – by way of copy of the
ration card/voter’s identity card/driving license/passport/telephone bill/
electricity bill/affidavit/any other documented proof.
Sales
Tax
Central
Sales Tax (CST)
CST
is 4% on manufactured goods.
Local
Sales Tax (LST)
Where
a sale takes place within a state, LST would be levied. Such a tax would be
governed by the relevant state tax legislation. This is normally up to 15%.
Excise
Duty
Excise duty on most commodities ranges
between 0 to 16%. Only on seven items duty is imposed at 32%, viz., motor cars,
tyres, aerated soft drinks, air conditioners, polyesters filament yarn, pan
masala and chewing tobacco. Duty is charged at 30% on petrol with additional
excise duty at Rs. 7 per litre. The said rates are subject to exemptions and
deductions thereon as may be notified from time to time. Central VAT (CENVAT)
is applicable to practically all manufactured goods, so as to avoid cascading
effect on duty.
Small Scale Sector is exempted from payment
of excise duty from annual production upto Rs.10 million
Value Added Tax
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VAT is a multi-point tax on value
addition which is collected at different stages of sale with a provision for
set-off for tax paid at the previous stage/tax paid on inputs.
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What
is meant by 'Sale' under Delhi VAT Law?
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Sale includes: -
1. The conventional sale i.e. Transfer of property in goods; 2. Supply of goods by a society, club, firm, and company to its members; 3. Transfer of property in goods involved in execution of works contract; 4. Delivery of any goods on hire purchase or any other system of payment by enlistments; 5. Transfer of right to use any goods, whether or not for a specified period; and 6. Supply of good or other articles by the restaurants, hotels etc., by way of or as a part of service. |
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VAT has only 2 major slabs of 4
& 12.5%.
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