The DELHI TAX ON LUXURIES ACT, 1996

THE DELHI TAX ON LUXURIES 
(AMENDMENT) ACT, 2012 [DELHI ACT 08 OF 2012] 
(No. F.14(5)/LA-2012/cons2law/83, dt. 22-6-2012) 
NOTIFICATION 
[No. F. 12(1)/Fin. (Rea-D/2012-13, dt. 1-8-20121 
In exercise of the powers conferred by Sub-section (3) of section 1 of the 
Delhi Tax on Luxuries (Amendment) Act, 2012 (Delhi Act 08 of 2012), the 
Lieutenant Governor of the National Capital Territory of Delhi, hereby 
appoints the 9th day of August, 2012, as the date on which the said Act shall 
come into force. 
The-following Act of the Legislative Assembly of the National Capital Territory of 
Delhi received the assent of the Lt. Governor of Delhi on 19th June, 2012 and is hereby 
published for general information:— 
As passed by the Legislative Assembly of the National Capital Territory of Delhi 
on the 6th June, 2012. 
An Act to further amend the Delhi Tax on Luxuries Act, 1996. 
Be it enacted by the Legislative Assembly of National Capital Territory of Delhi in 
the Sixty third Year of the Republic of India as follows:- 
1.  Short title and commencement 
(1) This Act may be called Delhi Tax on Luxuries (Amendment) Act, 2012. 
(2) It extends to the whole of the National Capital Territory of Delhi. 
(3) It shall come into force on such date as the Government may by notification in 
the Official Gazette, appoint. 
2.  Amendment of section 2 
In the Delhi. Tax on Luxuries Act, 1996 (hereinafter referred to as the principal Act), 
in section 2,— 
(i) After clause (a), the following clause shall be inserted, namely:— 
"(aa) "banquet hall" means any premises, garden or farm house, or any 
part thereof where accommodation or space is provided for marriage, 
reception or functions related therewith, seminar, convention, banquets, 
party, meeting, or exhibition-cum-sale and such other hall as may be 
specified by the Commissioner, irrespective of the fact whether on regular 
or periodical or occasional basis;"; 
(ii) For clause (b), the following clause shall be substituted, namely:—
"(b) "business" includes activity of providing any luxury and any other 
service in connection with, or incidental or ancillary thereto for monetary 
consideration;' 
THE DELHI TAX ON LUXURIES (AMENDMENT) ACT, 2012 (ix) 
(iii) For clause (e), the following clause shall be substituted, namely:—
"(e) "concessional rate" in relation to a luxury provided in a hotel, means 
a rate lower than the normal rate fixed for such luxury by the proprietor 
or lower than that fixed by any Government, authority or under law for 
the time being in forcen 
(iv) After clause (e), the following clauses shall be inserted, namely:— 
"(ea) "customer" means an individual or group or company or corporate 
availing any luxury; 
(eb) "establishment" means a banquet hall or a gymnasium/health club 
or a hotel or a spa where luxury is provided to a customer by way of 
business;" 
(v) After clause (f), the following clause shall be inserted, namely:—
"(fa) "gymnasium or health club'means a premises or hall or building or 
place equipped for gymnastics and other physical exercising 
equipment(s) for providing facilities and activities such as wellness, 
aerobics or body building or body sculpring etc."; 
(vi) The clause (h) shall be omitted; 
(vii) For clause (i), the following clause shall be substituted, namely: 
"(i) "luxury" means use of goods, services, property, facilities, etc. for 
enjoyment or comfort or pleasure or consumption by any customer 
extraordinary to the necessity of life, that is to say:— 
(i) Accommodation or space provided in a banquet hall which in-
cludes air cooling, air conditioning, chairs, tables, linen,1 utensils and 
vessels, shamiyana, tent, pavilion, electricity, water, fuel, interior or 
exterior decoration, music, orchestra, live telecast and the like; 
(ii) Services provided in a gymnasium or health club, which includes 
services of trainer or personal trainer, steam, sauna and the like; 
(iii) Accommodation and other services provided in a hotel, the rate 
or charges for which, including the charges for air cooling, air con-
ditioning, radio, music, extra beds, television and the like, is seven 
hundred fifty rupees per room per day or more whether such charges 
are received collectively or separately per room per day; 
(iv) Facilities or services provided in a spa which includes beauty 
treatment, manicure, pedicure, facial, laser treatment, massage 
shower, hydrotherapy, steam bath, saunas or cuisine, medispa and 
the like;"; 
(viii) After clause (1), the following clause shall be inserted, namely:—
"(la) "proprietor" means the owner of an establishment, jointly or 
severally, and includes partners, management, trust, company, firm or 
anybody who is for the time being in charge of the management of the 
establishment;"; 
(ix) For clause (m), the following clause shall be substituted, namely:—
"(m) "receipt" means the amount of monetary consideration received or 
receivable by a proprietor or by his agent for any luxury provided in the 
establishmetn 
(x) THE DELHI TAX ON LUXURIES (AMENDMENT) ACT, 2012 
(x) For clause (n), the following clause shall be substituted, namely:—
"()) "receipt" means the amount of monetary consideration received or 
receivable by a proprietor or by his agent for any luxury provided in the 
establishment;'!-; 
(xi) For clause (n), the following clause shall be substituted, namely:— 
"(n) "registered proprietor" means a proprietor registered under section 
8 of this Act;"; 
(xi) After clause (o), the following clause shall be inserted, namely:— 
"(oa) "spa" means a building or'part of building or space where facilities 
or services for beauty treatment or manicure or pedicure or facials or laser 
treatment or massage or shower or hydrotherapy or steam bath or saunas 
or cuisine or medispa or the like is provided;" 
(xii) For clause (p), the following clause shall be substituted, namely:— 
"(p) "tax" means the tax levied or leviable on turnover of receipts of an 
establishment and payable under this Act including any penalty, interest, 
fine, composition money, sum forfeited or any other charge levied or 
leviable under this Act;"; 
(xiii) For clause (q), the following clause shall be substituted, namely:— 
"(q) "tariff" means the charges levied or leviable by a proprietor for 
providing any luxury;"; 
(xiv) For clause (r), the following clause shall be substituted, namely:— 
"(r) "turnover of receipts" means the aggregate of amount of valuable 
consideration received or receivable by a proprietor in respect of any 
luxury;"; 
3.  Amendment of section 3 
In the principal Act, for section 3, the following shall be substituted, namely:— 
"3. Incidence and levy of tax 
(1) Subject to other provisions of this Act, every proprietor,— 
(a) registered under this Act; or 
(b) required to be registered under this Act; 
shall be liable to pay tax on his turnover of receipts calculated in accordance 
with this Act, at the time and in the manner provided in this Act. 
(2) There shall be levied a tax on the turnover of the receipts of a proprietor 
at a rate not exceeding fifteen percent to be notified by the Government from 
time to time and different rates may be notified for different class of luxuries: 
PROVIDED that, where the charges are levied otherwise than on daily 
basis or per room then the charges for determining the tax liability under this 
section shall be computed proportionately for a day and per room based on the 
total period of occupation of the accommodation for which the charges are 
made according to rules or practice of the hotel. 
(3) In case, in addition to the charges for providing luxury, service charges 
are levied and appropriated by the proprietor and not paid to the staff, then, 
such charges shall be deemed to be part of the turnover of receipts for the 
purpose of levy of tax under this Act.  . 
(4) In case luxury provided in a hotel to any person (not being an employee 
of the proprietor) is not charged at all, or is charged at a concessional rate, 
THE DELHI TAX ON LUXURIES (AMENDMENT) ACT, 2012 (xi) 
nevertheless there shall be levied and collected the tax on such luxury, at the 
rate specified in sub-section (2), as if full charges for such luxury were paid to 
the proprietor. 
(5) The tax shall not be levied and payable in respect of turnover of receipts 
for supply of food, drinks and goods such as cosmetics, medicines, nutritional 
supplements etc, on the sale of which the proprietor is liable to pay tax under 
the Delhi Value Added Tax Act, 2005. 
(6) For the purposes of this Act, tax collected separately by the proprietor 
shall not be considered to be part of the receipt or the turnover of receipts of 
the proprietor." 
4.  Amendment of section 8 
In the principal Act, in section 8, sub-section (1) shall be renumbered as sub-section 
(7), the following sub-section shall be inserted as sub-section (1), namely:— 
"(1) Every proprietor whose turnover of receipts for providing any luxury and 
charges incidental thereto, calculated from the commencement of any year first 
exceeds, within such year the threshold value as specified below, against the 
respective luxury, shall from the very next day, be required to get himself 
registered under this Act: 
S. No. Luxury Threshold Value 
(in rupees) 
1.  Banquet Hall facilities Five lacs 
2.  Gymnasium/Health Club Five lacs 
3.  Hotel accommodation with tariff Rs. 750/- per day per room or 
more 
Nil 
4.  Spa Five lacs 
PROVIDED that a proprietor, who is engaged in business of providing any luxury, 
other than that of accommodation in a hotel having tariff of rupees one thousand or 
more per room per day, and whose turnover in the previous year or in the year of 
commencement of the Delhi Tax on Luxuries (Amendment) Act, 2012 before the date of 
commencement, exceeds the threshold values specified above shall be liable for 
registration from the date of commencement of the aforesaid Act. 
5. Substitution of the word "hotel" 
In the principal Act, for the words "hotel", "a hotel" and 'hotels" wherever 
they occur, except in section 2, section 3 and sub-section (1) of section 8 the 
words "establishment", "an establishment" and "establishments" shall be 
substituted, respectively. 
6. Substitution of the word "hotelier" 
In the principal Act, for the word "hotelier", wherever it occurs, except in section 
2, section 3 and sub-section (1) of section 8, the word "proprietor" shall be substituted. 
(xii) THE DELHI TAX ON LUXURIES (AMENDMENT) ACT, 2012 
NOTIFICATION 
No. F.12 (3)/Fin(Rev-I)/2012-13, dt. 1-8-2012 
RATE OF TAX ON THE TURNOVER OF RECEIPTS OF THE PROPRIETOR 
LEVIABLE UNDER THE ACT 
In exercise of the powers conferred by sub-section (2) of section 3 of the Delhi Tax 
on Luxuries Act, 1996, (Delhi Act 10 of 1996), the Lieutenant Governor of National 
Capital Territory of Delhi, hereby notifies the rate of tax to be levied on the turnover of 
receipts of the proprietor in respect of luxury provided in establishments, as under:— 
S. No. Establishment Rate of Tax 
1.  Luxury provided in Banquet Hall being run and managed by 
DDA, MCD, NDMC and Delhi Cantonment Board 
Zero 
2.  Luxury provided in Banquet Hall other than mentioned at S. No. 
1 above 
Three percent 
3.  Luxury provided in Gymnasium/Health Club Three percent 
4.  Luxury provided in Hotel having tariff of Rs. 750/- or above but 
less than Rs. 1000/- per room per day 
Three percent 
5.  Luxury provided in Spa Three percent 
2. The notifications No. F. 12(6)/Fin.(T&E) /2008-09 /jsfin / 248, dated 22-6-2009 and 
F. 14(12)/ LA-2010 /lclaw/323, dated 10-9-2010 shall remain in force in respect of hotel 
having tariff of Rs. 1000/- per room per day and above. 
3. This notification shall come into force with effect from 9th August, 2012. 
THE DELHI TAX ON 
LUXURIES ACT, 1996 (Delhi Act No. 10 of 1996) 
[As amended by the Delhi Tax on Luxuries (Arndt.) Act, 2012 (8 of 2012), dt. 19-6-2012, 
zv.e.f. 9-8-2012 vide Noti. No. F. 12(1)Fin. (Rev.-D/2012-13, dt. 1-8-2012.1 
An Act to provide for the levy and collection of a tax on luxuries and for matters 
connected therewith in the National Capital Territory of Delhi. 
Be it enacted by the Legislative Assembly of the National Capital Territory of Delhi 
in the Forty Seventh year of the Republic of India as follows:- 
1.  Short title, extent and commencement 
(1) This Act may be called the Delhi Tax on Luxuries Act, 1996. 
(2) It extends to the whole of the National Capital Territory of Delhi. 
(3) It shall come into force on such date as the Government may, by notification in 
the Official Gazette, appoint in this behalf and different dates may be appointed for 
different provisions of this Act. 
2. Definition 
In this Act, unless the context requires otherwise:— 
(a) "appointed day" means the day appointed by the Government under 
sub-section (3) of section 1; 
1 [(aa) "banquet hall" means any premises, garden or farm house, or any part 
thereof where accommodation or space is provided for marriage, 
reception or functions related therewith, seminar, convention, banquets, 
party, meeting, or exhibition-cum-sale and such other hall as may be 
specified by the Commissioner, irrespective of the fact whether on regular 
or periodical or occasional basis;] 
2 [(b) "business" includes activity of providing any luxury and any other service 
in connection with, or incidental or ancillary thereto, for monetary 
consideration;] 
(c) "club" includes both an unincorporated and unincorporated association 
of persons, by whatever name called; 
(d) "Commissioner" means the person appointed to be the Commissioner of 
Luxury Tax for the purposes of this Act and includes an Additional 
Commissioner, if any, appointed under section 7; 
2 [(e) "concessional rate" in relation to a luxury provided in a hotel, means a 
rate lower than the normal rate fixed for such luxury by the proprietor or 
lower than that fixed by any Government, authority or under law for the 
time being in force;] 
1 [(ea) "customer" means an individual or group or company or corporate 
availing any luxury; 
1  Inserted by the Delhi Tax on Luxuries (Amdt.) Act, 2012, dt. 19-6-2012, w.e.f. 9-8-2012. 
2 Substituted, ibid. 
2 THE DELHI TAX ON LUXURIES ACT, 1996 SECTION 2 's 
(eb) "establishment" means a banquet hall or a gymnasium/health club or a 
hotel or a spa where luxury is provided to a customer by way of business;] 
(f) "Government" means the Government of National Capital Territory of 
Delhi; 
1[(fa) "gymnasium or health club" means a premises or hall or building or place 
equipped for gymnastics and other physical exercising equipment(s) for 
providing facilities and activities such as wellness, aerobics or body 
building or body sculpting etc.;) 
(g) "establishment" includes a residential accommodation, a lodging house, 
an inn, a club, 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; 
2 [(h) "hotelier" means the owner of the establishment and includes the person who for 
the time being is in charge of the management of the establishment;] 
3[(i) "luxury" means use of goods,, services, property, facilities etc. for 
enjoyment or comfort or pleasure or consumption by any customer 
extraordinary to the necessity of life, that is to say:— 
(i) accommodation or space provided in a banquet hall which includes 
air cooling, air conditioning, chairs, tables, linen, utensils and vessels, 
shamiyana, tent, pavilion, electricity, water, fuel, interior or exterior 
decoration, music, orchestra, live telecast and the like, 
(ii) services provided in a gymnasium or health club, which includes 
services of trainer or personal trainer, steam, sauna and the like, 
(iii) accommodation and other services provided in a hotel, the rate or 
charges for which, including the charges for air cooling, air condition- 
ing, radio, music, extra beds, television and the like, is seven hundred 
fifty rupees per room per day or more, whether such charges are 
received collectively or separately per room per day, 
(iv) facilitles or services provided in a spa which includes beauty treat-
ment, manicure, pedicure, facial, laser treatment, massage shower, 
hydrotherapy, steam bath, saunas or cuisine, medispa and the like;] 
(j) "person" includes any company, club or association or body of 
individuals whether incorporated or not, and also a Hindu undivided 
family, a firm, a local authority, a State Government and the Central 
Government; 
(k) "place of business" includes an office, or any other place which is used by 
a person for the purpose of his business or where he keeps his books of 
accounts; 
(1) " prescribed" means the prescribed under this Act or the rules framed 
under this Act; 
1[(lal "proprietor" means the owner of an establishment, jointly or severally and 
includes partners, management, trust, company, firm or anybody who is 
for the time being in charge of the management of the establishment;] 
1  Inserted by the Delhi Tax on Luxuries (Amdt.)-Act, 2012, dt. 19-6-2012, w.e.f. 9-8-2012. 
2  Omitted, ibid. 
3  Substituted, ibid. 
SECTION 3 THE DELHI TAX ON LUXURIES ACT, 1996 3 
1[(m) "receipt" means the amount of monetary consideration received or 
receivable by a proprietor or by his agent for any luxury provided in the 
establishment;] 
1[(n) "registered proprietor" means a proprietor registered under section 8 of 
this Act;] 
(o) "rules" means rules made under this Act; 
1
[(oa) "spa" means a building or part of building or space where facilities or 
services for beauty treatment or manicure or pedicure or facials or laser 
treatment or massage or shower or hydrotherapy or steam bath or saunas 
or cuisine or medispa or the like is provided;] 
1[(p) "tax" means the tax levied or leviable on turnover of receipts of an 
establishment and payable under this Act including any penalty, interest, 
fine, composition Trioney, sum forfeited or any other charge levied or 
leviable under this Act;] 
1[(q) "tariff" means the charges levied or leviable by a proprietor for providing 
any luxufy;] 
1[(r) "turnover of receipts" means the aggregate of amount of valuable 
consideration received or receivable by a proprietor in respect of any 
luxury;] 
(s) "year" means the financial year. 
1[3. Incidence and levy of tax 
(I) Subject to other provisions of this Act, every proprietor,— 
(a) registered under this Act; or 
(b) required to be registered under this Act, 
shall be liable to pay tax on his turnover of receipts calculated in accordance with this 
Act, at the time and in the manner provided in this Act. 
(2) There shall be levied a tax on the turnover of the receipts of a proprietor at a 
rate not exceeding fifteen percent to be notified by the Government from time to time 
and different rates may be notified for different class of luxuries: 
PROVIDED that, where the charges are levied otherwise than on daily basis or per 
room then the charges for determining the tax liability under this section shall be 
computed proportionately for a day and per room based on the total period of 
occupation of the accommodation for which the charges are made according to rules or 
practice of the hotel. 
(3) In case, in addition to the charges for providing luxury, service charges are 
levied and appropriated by the proprietor and not paid to the staff, then, such charges 
shall be deemed to be part of the turnover of receipts for the purpose of levy of tax under 
this Act. 
(4) In case luxury provided in a hotel to any person (not being an employee of the 
proprietor) is not charged at all, or is charged at a concessional rate, nevertheless there 
shall be levied and collected the tax on such luxury, at the rate specified in sub-section 
(2), as if full charges for such luxury were paid to the proprietor. 
(5) The tax shall not be levied and payable in respect of turnover of receipts for 
supply of food, drinks and goods such as cosmetics, medicines, nutritional supplements 
1  Substituted by the Delhi Tax on Luxuries (Amdt.) Act, 2012, dt. 19-6-2012, w.e.t. 9-8-2012. 
4 THE DELHI TAX ONT.MURIES ACT, 1996 SECTION 6 
etc. on the sale of which the proprietor is liable to pay tax under the Delhi Value Added 
Tax Act, 2005. 
(6) For the purposes of this Act, tax collected separately by the proprietor shall not 
be considered to be part of the receipt or the turnover of receipt -sr-cif the proprietor.] 
4. Liability of '[proprietor] 
(1) Subject to the provisions of this Act and the rules made thereunder there shall 
be paid by every .'[proprietor] who is liable to pay tax under this Act, the tax or taxes 
pay tax leviable in accordance with the provisions of this Act. 
(2) If a person other than the owner (including part-owner) is for the time being in 
charge of the business, then such person and the owner (including part-owner) shall 
jointly and severally be liable to pay the tax. 
5. Liability of firms as 2[proprietors] 
Where a business is owned, managed or run by a firm, then the firm and each of 
the partners of the firm shall be jointly and severally liable for payment of tax: 
PROVIDED that, where any partner retires from the firm, he shall be liable to pay 
the tax, if any, remaining unpaid at the time of his retirement, and any tax due upto the 
date of his retirement, even if assessment of tax is made at a later date. 
6.  Special provision regarding liability to pay tax including any penalty or interest 
in certain cases 
(1) INktere a '[proprietor], liable to pay tax under this Act, dies, then:— 
(a) if the business carried on by the '[proprietor] is continued after his death 
by his legal representative or any other person such legal representative 
or other person shall be liable to pay the tax due from such [proprietor] 
under this Act in the like manner and to the same extent as the deceased 
'[proprietor]; or 
(b) if the business carried on by the '[proprietor] is discontinued, whether 
before or after his death, his legal representative shall be liable to pay out 
of the estate of the deceased, in the like manner and to the same extent as 
the deceased l [proprietor] would have been liable to Fay if he had not 
died, the tax due from such '[proprietor] under this Act, whether such tax 
has been assessed before his death but has remained unpaid or is assessed 
after his death. 
Explanation: For the purpose of this sub-section, the expression "legal 
representative" has the meaning assigned to it in clause (11) of section 2 of the Code of 
Civil Procedure, 1908 (V of 1908). 
(2) Where a l[proprietor] liable to pay tax under this Act is a Hindu undivided 
family and the joint family property is partitioned amongst the varicnis members or 
group of members then each member or group of members shall be join tly and severally 
liable to pay the tax due from the '[proprietor] under this Act upto the time of partition 
whether such tax has been assessed before partition but has remained unpaid or is 
assessed after partition. 
(3) Where a '[proprietor], liable to pay tax under this Act is a firm and the firm is 
dissolved, then every person who was a partner shall be jointly and severally liable to 
pay to the extent to which he is liable under section 5, the tax due from the firm under 
1  Substituted for "hotelier" by the Delhi Tax on Luxuries (Arndt.) Act, 2012, dt. 19-6-2012, w.e.f. 9-8-2012. 
2 Substituted for "hoteliers", ibid. 
SECTION 7 THE DELHI TAX ON i. UXURIES ACT, 1996 5 
this Act upto the time of dissolution, whether such tax has been assessed before such 
dissolution but has remained unpaid or is assessed after dissolution. 
(4) Where a '[proprietor], liable to pay tax under this Act, transfers or otherwise 
disposes of his business in whole or in part or effects any change in the ownership 
thereof, in consequence of which he is succeeded in the business or part thereof by any 
other person, then the '[proprietor] and the person succeeding shall jointly and severally 
be liable to pay the tax due from the '[proprietor] under this Act upto the time of such 
transfer, disposal or change, whether such tax has been assessed before such transfer, 
disposal or change but has remained unpaid, or is assessed thereafter. 
(5) Where a '[proprietor], liable to pay tax under this Act— 
(a) is the guardian of a ward on whose behalf the business is carried on, or 
(b) is the trustee who carries on the business under a trust of a beneficiary, 
then, if the guardianship or trust is terminated the ward or, as the case 
may be, the beneficiary shall be liable to pay the tax due from the 
'[proprietor] upto the time of termination of the guardianship or trust, 
whether such tax has been assessed before the termination of the 
guardianship or trust, but has remained unpaid or is assessed thereafter. 
(6) Where a '[proprietor], liable to pay tax under this Act, is succeeded in the 
business by any person in the manner described in clause (a) of sub-section (1) or in 
sub-section (4), then such person, unless he already holds a certificate of registration, 
shall, within thirty days thereof, apply for registration. 
7.  Authorities under the Act 
(1) (a) For carrying out the purposes of this Act, the Government shall, by 
notification, appoint an officer to be the Commissioner of Luxury Tax. 
(b) To assist the Commissioner in the discharge of his functions under this 
Act the Government may appoint one or more officers to be Additional 
Commissioners of Luxury Tax, and such number of Deputy 
Commissioners of Luxury Tax, Assistant Commissioners of Luxury Tax 
and Luxury Tax Officers and such other officers with such designations 
as the Government may think necessary. 
(2) The Government may, by notification in Official Gazette. specify the powers 
and functions which an officer appointed under clause (b) of sub-section (1) may exercise 
and discharge. 
(3) The Commissioner shall have jurisdiction over whole of the National Capital 
Territory of Delhi and the other officers appointed under clause (b) of sub-section (1) 
shall have jurisdiction either over the whole of the National Capital Territory of Delhi 
or such areas or 2[establishments] as the Commissioner may specify by notification in 
official Gazette. 
(4) The superintendence and control for the proper execution of the provisions of 
this Act and the rules made thereunder relating to the levy and the collection of tax shall 
vest in the Commissioner. 
1  Substituted for "hotelier" by the Delhi Tax on Luxuries (Arndt.) Act, 2012, dt. 19-6-2012, w.e.f. 9-8-2012. 
2  Substituted for "hotels", ibid. 
6 THE DELHI TAX ON LUXURIES ACT, 1996 SECTION 8 
8. Registration 
1 (1) Every proprietor whose turnover of receipts for providing any luxury and 
charges incidental thereto, calculated from the commencement of any year first exceeds, 
within such year the threshold value as specified below, against the respective luxury, 
shall, from the very next day, be required to get himself registered under this Act: 
Sl. No. Luxury Threshold Value 
(in rupees) 
1.. Banquet Hall facilities five lacs 
2.  Gymnasium/Health Club five lacs 
3.  Hotel accommodation with tariff Rs. 750/- per day per room or 
more 
nil 
4.  Spa five lacs 
PROVIDED that a proprietor, who is engaged in business of providing any luxury, 
other than that of accommodation in a hotel having tariff of rupees one thousand or 
more per room per day and whose turnover in the previous year or in the year of 
commencement of the Delhi Tax on Luxuries (Amendment) Act, 2012 before,the date of 
commencement, exceeds the threshold values specified above shall be liable for 
registration from the date of commencement of the aforesaid Act.] 
(2) Every 2[proprietor] required to possess a certificate of registration shall apply 
in the prescribed form to the Commissioner within thirty days from the date on which 
the 2[proprietor] first becomes liable to pay the tax. 
(3) If the Commissioner, after such inquiry as he deems fit, is satisfied that an 
application for registration is in order, he shall register the applicant and issue to him a 
certificate of registration in the prescribed form. 
(4) The Commissioner may, after considering any information furnished or 
otherwise called for or received under any provision of this Act, amend from time to 
time the certificate of registration. 
(5) Where a registered 2[proprietor] discontinues, transfers or otherwise disposes 
of his activity of providing accommodation by way of business or where he ceases to be 
liable to pay the tax and he applies in the prescribed form to the Commissioner, on 
receipt of such application, the Commissioner shall, after making such inquiry as may 
be necessary, cancel the certificate of registration with effect from such date as he may 
fix in accordance with the rules. 
(6) Where the Commissioner is satisfied that any registered 2[proprietor] has 
discontinued, transferred or otherwise disposed of his business and has failed to apply 
under sub-section (5) for cancellation of certificate of registration, the Commissioner 
may, after giving the 2[proprietor] a reasonable opportunity of being heard, cancel the 
certificate of registration with effect from such date as he may fix to be the date from 
which the said activity has been discontinued, transferred or otherwise disposed of: 
PROVIDED that, the cancellation of certificate of registration whether on an 
application of the 2[proprietor] or otherwise shall not affect the liability of the 
1  Inserted by the Delhi Tax on Luxuries (Amdt.) Act, 2012, dt. 19-6-2012, w.e.f. 9-8-2012. 
2 Substituted for "hotelier", ibid. 
SECTION 11 THE DELHI TAX ON LUXURIES ACT, 1996 7 
'[ proprietor] to pay the tax due for any period upto the date of cancellation whether 
such tax is assessed before or after the date of cancellation. 
2 [(7)] No '[proprietor] liable to pay the tax under this Act shall conduct or cause to 
be conducted business, unless he possesses a valid certificate of registration as provided 
by this Act: 
PROVIDED that, it shall be lawful for the l [proprietor] to conduct or cause to 
conduct business, if the l [proprietor] has applied to registration as provided by this Act. 
9. Non-transferability of registration certificate 
Save as otherwise provided in section 11, a certificate of registration shall be 
personal to the '[proprietor] to whom it is granted and shall not be transferable. 
10. Information to be furnished regarding tariff, changes in business, etc. 
(1) If a '[proprietor] liable to pay tax-under this Act:— 
(a) sells or otherwise disposes of his business or any part thereof, or effects 
or makes any other change to his knowledge in the ownership of the 
business, or 
(b) discontinues his business, or changes the place thereof or opens a new 
place of business, or 
(c) changes the name or nature of his business, or 
(d) enters into a partnership or other association in regard to his business, he 
shall within the prescribed time, inform the Commissioner or prescribed 
authority accordingly. 
(2) Where any such '[proprietor], dies, his executor, administrator or other legal 
representative or where any such '[proprietor] is a firm and there is a change in the 
constitution of the firm or the firm is dissolved, every person who was a partner thereof, 
shall, in like manner, inform the Commissioner or the said authority of such death, 
change in the constitution, or as the case may be, dissolution. 
(3) Every' [proprietor] liable to pay tax under this Act shall, within thirty days from 
the coming into force of this Act, communicate in the prescribed form to the 
Commissioner the rates of tariff: 
PROVIDED that if the rates of tariff charged are revised, the revised rates shall be 
communicated by the '[proprietor] to the Commissioner within fifteen days of such 
revision. 
11. Certificate of registration to continue in certain circumstance 
Where a registered '[proprietor]— 
(a) effects change in the name of his business, or 
(b) is a firm; and there is a change in the constitution of the firm without 
dissolution thereof, or 
(c) is a trustee of a trust, and there is change in the trustees thereof, or 
(d) is a guardian of a ward, and there is change in the guardian, then merely 
by reason of any of the circumstances aforesaid, it shall rot be necessary 
for the '[proprietor], or the firm with the changed constitution, or the new 
trustees, or new guardian, to apply for a fresh certificate of registration 
1  Substituted fcr "hotelier' by the Delhi Tax on Luxuries (Amdt.) Act, 2012, dt. 19-6- 2012, w.e.f. 9-8-2012. 
2  Existing sub-section (1) re-numbered as sub-section (7), ibid. 
8 THE DELHI TAX ON LUXURIES ACT, 1996 SECTION 13 
and on information being furnished in the manner required by section 10, 
the certificate of registration shall be amended. 
12. Returns 
(1) Every registered '[proprietor] shall furnish returns for such period, by such 
dates, and to such authority, as may be prescribed: 
PROVIDED that, the Commissioner may, subject to such terms and conditions as 
may be prescribed, exempt any such '[proprietor] from furnishing such returns or 
permit any such '[proprietor]: 
(a) to furnish them for such different period; or 
(b) to furnish a consolidated return relating to all or any of the places of 
business of the l [proprietor] in the National Capital Territory of Delhi for 
such period, or for such different periods, 
to such authority, as he may direct. 
(2) If any '[proprietor], having furnished return under sub-section (1), discovers 
any omission or incorrect statement therein, he may furnish a revised return before the 
expiry of three months next following the last date prescribed for furnishing the original 
return and if the revised return shows a higher amount of tax due, then the amount 
shown in the original return, it shall be accompanied by the receipts showing payment 
of the additional tax due. 
(3) Every registered l [proprietor] required to furnish return in accordance with 
sub-section (1) shall pay in such manner as may be prescribed the full amount of tax due 
from him under this Act according to such return. 
(4) Every return under this section shall be verified in the prescribed manner by 
the registered l [proprietor] or any other person duly authorized by him in this behalf. 
13. Assessment of Tax 
(1) The amount of tax due from a l [proprietor] liable to pay tax shall be assessed 
separately for each year during which he is so liable: 
PROVIDED that, the Commissioner may, subject to such conditions as may be 
prescribed, assess the tax due from any '[proprietor] during a part of a year. 
(2) If the Commissioner is satisfied that the returns furnished by a registered 
[proprietor] in respect of any period are correct and complete he shall assess the amount 
of tax due from the '[proprietor] on the basis of such returns. 
(3) If the Commissioner is not satisfied that the returns furnished by a registered l [proprietor] in respect of any period are correct and complete, and he thinks it necessary 
to require the presence of the l [proprietor] or the production of further evidence, he shall 
serve on such '[proprietor] a notice of not less than fifteen days or a shorter period in 
case assessment is getting time barred requiring him on a date and at a place specified 
therein, either to attend and produce or cause to be produced all evidence on which such 
'[proprietor] relies in support of his returns, or to produce such evidence as is specified 
in the notice. On the date specified in the notice, or as soon as may be thereafter, the 
Commissioner shall, after considering all the evidence which may be produced, assess 
the amount of tax due from the '[proprietor]. 
(4) If a registered '[proprietor] fails to comply with the terms of any notice issued 
under sub-section (3), the Commissioner shall assess, to the best of his judgment, the 
amount of tax due from him. 
1  Substituted for "hotelier" by the Delhi Tax on Luxuries (Amdt.) Act, 2012, di 19-6-2012, w.e.f. 9-8-2012. 
SECTION 15 THE DELHI TAX ON LUXURIES ACT, 1996 9 
(5) Where all the returns are filed by a registered l [proprietor] for any year ending 
on or after the appointed day by the prescribed dates, or on or before the date prescribed 
for filing the last return of that year, no order of assessment under sub-section (3) or (4) 
in respect of that year shall be made after the expiry of three years from the end of the 
said year, and if for any reason such order is not made within the period aforesaid, then 
the returns so filed shall be deemed to have been accepted as correct and complete for 
assessing the tax due from such '[proprietor]: 
PROVIDED that, where a fresh assessment is to be made in view of any order made 
in appeal under this Act or by the High Court or by the Supreme Court or any other 
competent authority such assessment shall be made within twelve months from the date 
of receipt of such order: 
PROVIDED FURTHER that, in computing any period of limitation laid down in 
this sub-section the time during which the assessment remained stayed under the order 
of the High Court or of the Supreme Court or any other competent authority shall stand 
excluded. 
(6) If a registered '[proprietor] does not furnish return in respect of any period by 
the prescribed date, the Commissioner shall, at any time within three years from the end 
of the year in which such period occurs, after giving the l [proprietor] a reasonable 
opportunity of being heard, proceed to assess, to the best of his judgment, the amount 
of the tax (if any) due from him. 
(7) If the Commissioner has reason to believe that a '[proprietor] is liable to pay 
tax in respect of any period, but has failed to apply for registration or failed to apply for 
registration within time as required by section 8, the Commissioner shall, at any time, 
within four years from the end of the year in which such period occurs, after giving the 
'[proprietor] a reasonable opportunity of being heard, proceed to assess, to the best of 
his judgment, the amount of tax (if any) due from the '[proprietor] in respect of that 
period, and any period or periods subsequent thereto. 
(8) Notwithstanding anything contained in the foregoing provisions of this section, 
where the Commissioner is not satisfied about the correctness or the completeness of 
the acebunts of a '[proprietor], or where no method of accounting has been regularly 
employed by a '[proprietor], the Commissioner may, after giving the '[proprietor] a 
reasonable opportunity of being heard, assess to the best of his judgment, the amount 
of tax (if any; due from him. 
(9) Any assessment made under this section shall be without prejudice to any 
penalty, or prosecution of an offence, under this Act. 
14. Applicability of the provisions of this Act to persons liable to pay tax under 
section 6 
Where in respect of any fax due from a '[proprietor] under this Act, any other 
person is liable for payment thereof under section 6, then such other person shall be 
deemed to be a '[proprietor] for the purpose of this Act, and all the relevant provisions 
of this Act shall in respect of such liability apply to such person also, as if he were the 
'[proprietor]. 
15. Reassessment of turnover escaping assessment, under-assessed 
(1) If a '[proprietor] has been assessed under section 13 for any year or part thereof 
and where for any reason the whole or any part of the turnover of receipts in respect of 
that year or part thereof has escaped assessment, or has been under-assessed or assessed 
1  Substituted for "hotelier" by the Delhi Tax on Luxuries (Amdt.) Act, 2012, dt. 19-6-2012, w.e.f. 9-8-2012. 
10 THE DELHI TAX ON LUXURIES ACT, 1996 SECTION 16 
at a lower rate, or any deduction has been wrongly made, then the Commissioner may, 
at any time within three years of the end of that year, etc. after giving the '[proprietor] 
a reasonable opportunity of being heard, proceed to assess or reassess, to the best of his 
judgment, the amount of tax due from such '[proprietor]: 
PROVIDED that, the amount of tax shall be assessed at the rates at which it would 
have been assessed had there been no under-assessment or escapement: 
PROVIDED FURTHER that, where in respect of such turnover of receipts an order 
has already been passed in appeal or revision under this Act, the Commissioner shall 
make a report to the appropriate appellate or revising authority under this Act, which. 
shall thereupon after giving the '[proprietor] concerned a reasonable opportunity of 
being heard, pass such orders as it deems fit. 
(2) Nothing in sub-section (1) shall apply to any proceeding (including any notice 
isued) under section 38 or 41. 
(3) Nothing in section 38 or 41 shall affect any proceeding under this section. 
16. Imposition of penalty and levy of interest 
(1) If, while assessing or reassessing the amount of tax due from a '[proprietor] 
under any provisions of this Act or while passing any order in any appeal, revision, 
review or rectification proceedings, it appears to the Commissioner that such 
[proprietor] has:— 
(a) failed-to apply for registration as required by section 8 or has carried on 
business, without being registered, in contravention of section 8; 
(b) failed to disclose any transaction or receipt or has failed to furnish return 
by the prescribed date or has failed to show in the return the appropriate 
liability to pay tax or has failed to disclose fully and truly all material facts 
necessary for the proper and correct quantification of the tax liability, then 
the Commissioner may, after giving the '[proprietor) an opportunity of 
being heard, by order in writing impose upon the '[proprietor] by way of 
penalty, in addition to any tax assessed or reassessed or found due in the 
appeal or revision or rectification proceedings, as the case may be: 
(i) in the case covered by clause (a), a sum not exceeding the amount of 
the tax payable by the l [proprietor] for the period during which he 
carried on business, without being registered, in contravention of 
section 8; 
(ii) in the case covered by clause (b), a sum not exceeding the amount of 
tax found payable under the said clause. 
(2) If a l [proprietor]:— 
(a) does not pay the tax within the time he is required by or under the 
provisions of this Act to pay if, or 
(b) is found liable to pay tax under the provisions of clause (b) of sub-section 
(1), 
then, without prejudice to the provisions of sub-section (1), he shall be liable to pay 
simple interest at the rate of two per cent of the amount of such tax for each month after 
the last day by which he should have paid such tax: 
1  Substituted for "hotelier" by the Delhi Tax on Luxuries (Amdt.) Act, 2012, dt. 19-6-2012, w.e.f. 9-8-2012. 
SECTION 18 THE DELHI TAX ON LUXURIES ACT, 1996 11 
PROVIDED that, the Commissioner or any appellate authority may, for reasons to 
be recorded in writing, remit the whole or any part of the interest payable in respect of 
any period. 
17. Imposition of penalty for contravening certain provisions 
(1) If any person— 
(a) (i) Not being a l [proprietor] liable to pay tax under this Act, collects any 
sum by way of tax, or 
(ii) being a registered 1[proprietor], collects any amount by way of tax in 
excess of the tax payable by him, or 
(iii) otherwise collects tax in contravention of the provisions of section 27, 
or 
being a 1[proprietor] liable to pay tax under this Act, or being a l
[proprietor] who was required so to do by the Commissioner by a notice, 
served on him, fails in contravention of sub-section (1) of section 29 to keep 
a true account of his turnover of receipts or fails when directed so to do 
under that section to keep any accounts or record in accordance with the 
direction, 
he shall be liable to pay, in addition to any tax for which he may be liable, a penalty of 
an amount as follows: 
(A) where there has been contravention referred to in sub-clause (i) or (iii) of 
clause (a), a penalty of an amount not exceeding twenty thousand rupees 
or double the sum collected by way of tax, whichever is less. 
(B) where there has been a contravention referred to in sub-clause (ii) of clause 
(a) or in clause (b), a penalty of an amount not exceeding twenty thousand 
rupees, 
and in addition any sum collected by the person by way of tax in contravention of section 
27 shall be forfeited to the Government. 
(2) If the Commissioner, in the course of any proceeding under this Act or 
otherwise, has reason to believe that any person has become liable to a penalty or 
forfeiture or both penalty and forfeiture of any sum under sub-section (1), he shall serve 
on such person a notice in the prescribed manner requiring him on a date and at a place 
specified in the notice to attend and show cause why a penalty or forfeiture or both 
penalty and forfeiture of an

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