As per the Delhi Tax on Luxury Tax, 1996, banquet halls, gymnasium and spas having an annual turnover of Rs five lakh will have to pay luxury tax on their services. The luxury tax is also levied on hotel accommodation with tariff of Rs 750 or more per day per room.
Rate of Luxury tax
- 3% on Banquet Hall
- 3% on Gymnasium/Health Club
- 3% on hotel having tariff of Rs. 750/- or above but less than Rs 1000/- per room per day
- 10% on hotel having tariff Of Rs. 1000/- or more per room per day –3% on spa
The following are the basic requirements / documents, a hotelier has to submit to get itself registered :-
- Form 1, 4 and 7 duly completed
- Two passport size photograph of person/ partners. Application form shall be duly signed and verified.
- Proof of ownership/possession of property by the hotelier (any document indicating proof of possession e.g. rent, agreement, rent-receipt etc.)
- Proof of residential addresses as furnished in para-2 of Form 4 – by way of a copy of the ration card / voter’s identity card / driving license / passport / telephone bill / electricity bill / affidavit / any other documentary proof.
- Copy of first Bill and copy of first bill against which the hotelier first became liable to pay Luxury Tax.
- Photocopy of first page of Guest Entry Register.
- Copy of partnership deed / Certificate of Registration under the Society Act /trust deed / Memorandum of Article of Association.
- Copy of PAN of the Director / Partners / Proprietor / Karta etc. / Authorized Person / Company / trust / Firm.
- Copy of Board resolution in respect of authorized person.
- Detail of Bank Accounts.
Other Essential Requirements:
The following are the other necessary requirements which must be fulfilled after registration, if they are not fulfilled due to genuine reasons, before registration.
- Partnership deed and the certificate of registration of the partnership firm / certificate of incorporation and memorandum and articles of association in case of a body corporate.
- Letter of authorization in favour of person signing and verifying the application (copy of the board’s resolution to this effect, in case of a body corporate).
- Copy of sales tax registration certificate, if any. After submitting the above mentioned requirements the Department has to see as to whether the registration certificate can be granted to the concerned applicant as per Delhi Tax on Luxury Tax, 1996.
Form No. 1A- Basic Information of luxury in respect of Gymnasium Health Club or Spa and tariff- This relates to basic information like type of luxury provided and rate of tariff.
Form No. 1- Application for declaration of Information of Tariff- this is for registering in luxury tax. This includes number of rooms available and tariff.
Form No. 2A- Daily account of luxury provided in Banquet Hall or Gymnasium Health Club or Spa and collection of tax.
Form No. 3- Monthly abstract of collection and remittance of taxForm No.2- Daily account of occupancy of residential accommodation
Form No. 6- Application of Cancellation of Registration under Section 8(5)
Form No. 7- Declaration Revised Declaration under Section 31Form No. 4-Application for registration under Section 8
Form No. 8- Return of Tax Payable- this form is for return of luxury tax.
Form No. 8A- Luxury Tax Challan
Quarterly return in form 8 along with Receipt of payment in Form 8A, on or before the last day of the month immediately succeeding means:
For 1st April to 30th June- 31st July; For 1stJuly to 30thSep- 31st Oct; For 1stOct to 31stDec- 31st Jan and For 1stJanuary to 31st March- 30st April
Payment of Tax shall be made on or before the date of return in Form 8A.