What is the Luxury Tax?
Ans. As an attempt to mobilise a new source of revenue, the Govt. of Delhi decided to explore an hitherto untapped source of revenue namely the Hospitality Industry. The Luxury Tax was introduced w.e.f from 1.11.1996 which shall be levied @10% on various hotels, Inns, lodging houses, clubs etc. providing “Luxury” meaning thereby accommodation and other services, 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. The term “hotel” includes a residential accommodation, a lodging house, an inn, a club (both incorporated and un-incorporated association of persons), 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.
Related Questions
- Luxury Tax From: Tom Date: Wed, 5 May 2004 Hi Michael, I know there is no longer a federal luxury tax, but does California still charge a luxury tax on autos?
- Luxury Tax Date: Thu, 24 Mar 2005 From: Dorothy Dear Sir: I want to buy a BMW Z4 for about $40,000. What is the luxury tax?
- Are Wine Equalisation Tax (WET) and Luxury Car Tax (LCT) included in the Deferred GST Scheme?
