LexThe Jharkhand Taxation on Luxuries in Hotels Act, 2011
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Jharkhand Taxation on Luxuries in Hotels Act, 2011
(Jharkhand Act No. 21, 2011)
[30 th September, 2011]
BE it enacted by the Legislature of the State of Jharkhand, In the Sixty Two year of the
Republic of India as follows:-
1. Short title, extent and commencement. – (1) This Act may be called the
Jharkhand Taxation on Luxuries in Hotel Act, 2011.
(2) It extends to the whole of the State of Jharkh and.
(3) It shall come into force on such date as the S tate Government may, by
notification in the Official Gazette, appoint.
2. Definitions. – In this Act unless there is anything repugnant to the subject or context. –
(a) ‘Assistant Commissioner’ means an Assistant Co mmissioner of Commercial Taxes
appointed under sub-section (2) of section 4 of the Jharkhand Value Added Tax Act, 2005
( Jharkhand Act 05, 2006).
(b) ‘Authority’ means an Authority referred in the rules made under this Act;
(c) ‘Commissioner’ means the Commissioner of Comme rcial Taxes appointed under
sub-section (2) of section 4 of the Jharkhand Value Added Tax Act, 2005 ( Jharkhand Act 05,
2006) and includes Additional Commissioner of Commercial Taxes.
(d) ‘Commercial Taxes Officer’ means a Commercial Taxes Officer appointed under
sub-section (2) of section 4 of the Jharkhand Value Added Tax Act, 2005 ( Jharkhand Act 05,
2006);
(e) ‘Deputy Commissioner’ means a Deputy Commissio ner of Commercial Taxes
appointed under sub-section (2) of section 4 of th e Jharkhand Value Added Tax Act,
2005 ( Jharkhand Act 05, 2006);
(f) ‘Hotel’ includes a boarding house, a lodging house, a banquet hall, a marriage hall or
a house or a restaurant or any other hall or club o r societies or building including any
such premises / field / courtyard attached or annex ed to; whether open or otherwise,
where any room(s) or such place is provided with lu xuries therein, to any person on rent
or otherwise;
(g) ‘Joint Commissioner’ means a Joint Commissioner of Commercial Taxes appointed
under sub-section (2) of section 4 of the Jharkhand Value Added Tax Act, 2005
( Jharkhand Act 05, 2006);
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(h) ‘Luxuries’ means such amenities as are provided in a Hotel to the occupants or hirer
of such rooms or suite of rooms or otherwise therei n as to carry a rent of rupees two
hundred or more per day or part thereof;
(i) ‘Month’ means a calendar month or part thereof ;
(j) "Person" includes:-
(i) an Individual; (ii) a Joint Family;
(iii) a Company; (iv) a Firm;
(v) an association of persons or a body of individ uals; whether incorporated
or not and includes persons incharge of a club or s ociety or co-operative
societies;
(vi) the Central Government or the Government of J harkhand or the
Government of any other State or Union Territory in India;
(vii) a local Authority or any Authority establish ed under any law;
(k) ‘ Prescribed’ means prescribed by rules made under this Act ;
(l) ‘Proprietor’ in relation to a hotel includes a person who is the owner or for the time
being is incharge of its management; whether by any agreement or otherwise.
(m) ‘Quarter’ means the quarter ending on the 30
th June, 30 th September, 31 st
December and 31 st March;
(n) ‘Rent’ means the aggregate of all charges, by whatever name called, realized from the
occupier / hirer of a room in a hotel and includes lodging, boarding or service charges or
any other sum charged by the proprietor or all or any of them;
Explanation 1 - Where the rate of rent of a room is not charged for occupation alone, and
boarding and service charged are included therein t hen the actual sum realized for each day, or
part thereof ( excluding any sum paid for food or d rinks) and charges for service and any
entertainment and like shall be aggregated and the total shall be deemed to be the rent.
Explanation 2 – Where charges are levied otherwise than on daily ba sis, then the charges shall
be computed as for a day based on the period of occ upation of the room for which charges are
made.
(o) ‘Room’ includes a suite of rooms, a banquet ha ll, a marriage hall or house or any
other hall or building including any such premises whether open or otherwise or as defined in
clause (f) of this section, which is ordinarily hired out as one unit or otherwise;
(p) ‘Tax’ means the tax levied under this Act ;
(q) ‘Tribunal’ means the Tribunal constituted unde r section 3 of the Jharkhand Value
Added Tax Act, 2005 (Jharkhand Act 05, 2006);
(r) ‘Year’ means a financial year.
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3. Levy of Tax. – (1) There shall be levied and paid to the Stat e Government a tax on
Hotels by the proprietor (s) on the rent, exceeding Rs. 200 per day or part thereof, for a
room or suite of rooms provided with luxuries in a hotel at the rate(s), as specified in the
schedule appended to this Act.
(2) Notwithstanding anything contained in sub-secti on (1), the State Government by a
notification may amend, alter, add, increase or dec rease any rate(s) as specified in the
schedule.
Explanation – ‘Day’ for the purpose of this Act shall mean a calendar day, beginning at midnight
and part thereof.
4. Compounding of Tax – Notwithstanding anything contained in Section 3 of this Act ,
the State Government may, subject to such condition s and restrictions as it may specify,
by a notification, permit the proprietor of a hotel or class or description of hotels to pay in
lieu of tax payable under Section 3, a lump sum amount by way of compounding of tax.
5. Collection of tax by the proprietor . – Every proprietor liable to pay tax under Sectio n 3
shall collect along with rent, the amount of tax payable under the said section, from the
person to whom a room along with luxuries is provided by him.
6. Registration. – Every proprietor, who is liable to pay tax unde r section 3 shall apply
for a certificate of registration in the prescribed manner within a month of coming into
effect of this Act or within one month from the da te he starts providing room along with
luxuries in the hotel,
7. Returns . – (1) Every proprietor liable to pay tax under th is Act , shall submit a return for
every quarter by the twenty fifth day of the month following the quarter in the manner
prescribed.
(2) If any proprietor having furnished, returns, un der sub-section (1) discovers any
omission or error in the returns so filed, he may furnish a revised return without prejudice
to Section 12 and 13 before the expiry of the year.
8. Payment of Tax. – (1) The amount of tax payable under Section 3 an d Section 4 for
which return or revised return has been furnished u nder section 7 shall be paid by the
proprietor to the State Government by the 15
th day of the month following for every
month and differential amount as per revised return furnished by the end of the related
year into the Government Treasury in such manner as may be prescribed.
9. Assessment of Tax – (1) Assessment of the tax payable by a proprietor shall be made
after examining the accounts or registers and other evidences as the prescribed
authority may require.
(2) In case a proprietor does not furnish any return or fails to produce accounts for
assessment as required under sub-section (1), the p rescribed authority may, after
giving the proprietor a reasonable opportunity of b eing heard, assess the amount of
tax payable by such proprietor, to the best of his judgment.
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(3) If the prescribed authority, upon information which has come into his possession, is
satisfied that the proprietor has been liable to pay tax under this Act in respect of any
period, and has nevertheless failed to apply for re gistration under section 6 or having
so applied failed to comply with any requirement fo r registration within a reasonable
time and for which his application for registration has been rejected such prescribed
authority shall, after giving the proprietor an opp ortunity of being heard, assess the
amount of tax to the best of his judgment in respec t of such period and shall also
impose a penalty which shall be equal to the amount of tax so assessed.
10. Extension of period – The prescribed authority may for the reasons to be recorded in
writing extend the date for either filing the retur n under Section 7 or payment of tax
under section 8 or for payment of the assessed tax for a period not exceeding twenty days
from the due date.
11. Liability in case of default . – In the circumstance if any proprietor either fa ils to file
return under section 7 or to pay the tax under sect ion 8 or pay the amount of tax assessed
or penalty imposed under section 9 within the due o r extended date he shall be liable to
pay, by way of penalty a sum calculated at the rate not exceeding Rs. twenty for every
day of default or an interest at the rate of two an d half percentum of the amount of tax
due for every month or part thereof whichever is higher.
12. Escaped amount of rent detected before assessm ent:- (1) If the prescribed
authority, in course of any proceeding or otherwis e is satisfied that any proprietor:-
(a) has concealed any amount of rent or particulars the reof with a view to reduce
amount of tax payable by him under this Act ; or
(b) has furnished incorrect statement of rent in the return furnished under sub-section
(1) and (2) of section 7;
the prescribed authority shall, after giving such p roprietor an opportunity of
being heard, by an order in writing, direct that he shall in addition to any tax
which is or may be assessed under section 9, pay by way of penalty, a sum not
exceeding two times but not less than equal to amou nt of tax on concealed
particulars of rent.
(2). the penalty under sub-section (1) may be impo sed before completion of
assessment and for determining the amount of penal ty the prescribed
authority may determine the amount of tax provisio nally.
13. Amount of Rent escaping assessment: - (1) If upon information or otherwise the
prescribed authority is satisfied that reasonable g rounds exist to believe that any amount
of rent of a proprietor escaped assessment or amount of rent has been under assessed
or assessed at a lower rate than that which was cor rectly applicable, the prescribed
authority, after giving the proprietor a reasonable opportunity of being heard, re-assess
the proprietor for such escaped amount of rent. The provisions of section 9 shall, so far as
may be, apply accordingly as if the notice under this section is served under section 9.
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(2) The prescribed authority, if he has reason to b elieve that proprietor has concealed the
amount of rent shall direct the proprietor to pay i n addition to any tax which is or may be
assessed under sub-section (1), by way of penalty s um not exceeding three times but not
less than an amount equivalent to amount of tax whi ch is or may be assessed on the
escaped amount of rent.
No proceeding under this section shall be initiated except before the expiry of eight years
from the date of order of the original assessment.
14. Recovery of tax :- (1) The tax payable under this Act shall be paid in the manner
herein provided –
(a) the tax due according to the returns filed by a proprietor where full
payment of such tax has not been made; or
(b) tax assessed or reassessed under section 9 or 12 or 13 in pursuance of
or as a result of an order on appeal, revision, re ference or review, less the
sum, if any, already paid by the proprietor; or
(c ) penalty and interest, if any, imposed under an y of the provision of this Act ,
shall be paid by the proprietor into a Government Treasury, or in such other
manner, as may be prescribed by such date as may be specified in a notice issued
by the prescribed authority for this purpose and th e date to be so specified shall ,
ordinarily, not be less than forty five days from the date of service of such notice.
Provided that the prescribed authority, in respect of any particular proprietor and
for reasons to be recorded in writing, extend the date of such payment, or allow such
proprietor to pay the tax or interest or both due and penalty imposed, if any, by
installments.
Provided further, that where the prescribed author ity considers it expedient in the
interest of State revenue it may, for the reasons t o be recorded in writing, require any
proprietor to make payment forthwith.
(2) If a proprietor has failed, without reasonable caus e, to make payment of any tax
or interest or both by the date specified in the no tice issued under sub-section (1) or
forthwith as required by the second proviso thereto , or in the like manner has failed to
make payment of tax or interest or both by the date extended under the first proviso of
the said sub-section or has defaulted in payment of instalment the prescribed authority
may direct that the proprietor, shall pay, in the prescribed manner by way of penalty for
such failure, an amount which may extend to five pe rcentum of the amount of tax or
interest or both, for each of the first three month s following the expiry of such date and
to ten percentum for each subsequent month or part thereof.
(3) Any tax or interest or both or penalty imposed unde r the Act , which remains
unpaid after the date specified in the notice issue d under sub-section (1) or penalty
imposed under sub-section (2) and remaining unpaid shall without prejudice to any
other mode of recovery be recoverable as if it were an arrear of land revenue.
15. Special mode of recovery :- (1) Notwithstanding anything contained in the A ct or any
law or contract to the contrary, the authority pres cribed for assessment and recovery of
tax or interest or both and penalty imposed may, at any time by notice in writing ( a copy
of which shall also be given to the proprietor) direct –
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(a) any person who holds or may subsequently hold any m oney for or on account of the
proprietor, or
(b) any person from whom any money is due or may become due to the proprietor who
has failed to pay upto the date fixed in the notice of demand the amount of tax or
interest or both or penalty payable according to th e said notice of demand served
upon such proprietor or in respect of which the dat e of payment has not been
extended by any competent authority, to pay into th e Government treasury, in the
same manner as have been prescribed for payment of tax or interest or both either
forthwith or upon the money becoming due so much of the money as is sufficient to
pay the amount due from the proprietor.
(2) The authority issuing a notice unde r sub-section (1) may, at any time, amend or
revoke any such notice or extend the time for makin g payment in pursuance of the
notice.
(3) Any person making any payment in compliance with a notice issued under sub-
section (1) shall be deemed to have made the paymen t under the authority of the
proprietor and the receipt from the Government trea sury shall constitute a good and
sufficient discharge of the liability of that perso n to the proprietor to the extent of
amount specified in the receipt.
(4) Any person if not discharging the liability after service of notice under sub-sectio n
(1) on him, shall be personally liable to the State Government for the amount of tax
and interest or penalty.
(5) If amount, for which any person b ecomes liable personally to the State Government
under sub-section (4), remains unpaid, it shall be recoverable as an arrear of land
revenue from him.
(6) If any person contravenes any of the provisions of sub-section (4) of this section the
prescribed authority shall after giving an opportun ity of being heard by an order in
writing direct that such person shall pay by way of penalty a sum not exceeding twice
the amount payable under sub-section (1).
16. Liability to pay tax in case of transfer of b usiness :- (1)When the ownership of the
business of a proprietor, is entirely transferred, both the transferor and the transferee
shall jointly and severally be liable to pay any tax, interest and penalty, if any, payable
in respect of such business and remaining unpaid at the time of the transfer and the
transferee shall also be liable to pay tax on an d from the date of such transfer and shall
forthwith apply for grant of registration certifi cate unless such certificate is
already possessed by him.
(2) Where a proprietor liable to pay tax under the Act , transfers the ownership of a part
of his business, the transferor shall be liable to pay tax in respect of that part of
transferred business only.
17. Liability of dissolved firm or association of persons liable to pay tax under section 3
and 4:- Where the proprietor liable to pay tax under section 3 or 4 is a firm or association
of persons is dissolved or disrupted, as the case may be,
(a) The tax or interest or both and penalty payable und er this Act by such firm or
association of persons for the period upto the date of such dissolution or disruption
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may be assessed, as if no dissolution or disruption had taken place and all the
provisions of this Act shall apply accordingly, and
(b) Every person who was at the time of such dissolutio n or disruption a member or
partner of firm or association of persons shall not withstanding such dissolution or
disruption, be liable severally and jointly for the payment of the tax including
interest and penalty, if any, payable under this A ct by such firm or association of
persons, whether assessment is made prior to or aft er such dissolution or
disruption.
18. Maintenance of books of Accounts – Every proprietor liable to pay tax under section 3
and 4 of this Act shall keep a true and complete a ccount in respect of rent received,
other charges collected, registers of customers bill or cash memo issued and receipt
granted to customer as prescribed.
19. Inspection, search and seizure . – The assessing authority or any other authority
prescribed for this purpose may, with a view to sa tisfying itself that the provisions
of this Act or Rules made thereunder are being co mplied with;-
(a) enter any hotel at any time;
(b) require any proprietor of a hotel to produce before him any books of accounts or
other documents and inspect them:
(c) inspect any room to ascertain their occupancy; and
(d) seize any books, accounts and documents for detaile d examination and such seized
accounts, documents and other evidences shall be re tained for so long as may be
reasonably necessary for examination thereof.
Provided that a receipt shall be given to the prop rietor in respect of the books of account
and documents seized.
20. Exemption - Subject of such conditions and restrictions, the State Government may
specify, by notification, exempt any person or clas s of persons from payment of tax
payable under section 3 or section 4 of this Act .
21. Appeal – (1)Any proprietor aggrieved by an order of asses sment or reassessment and
penalty under section 9, 11 and 12 may, within six ty days from the date of order or
service of the notice of demand, appeal to the Join t Commissioner (Appeal) or any other
authority specially authorized in this behalf in the manner prescribed .
Provided that the appellate authority may condone the delay in preferring the appeal
if the appellant satisfies that he was prevented by any sufficient cause from preferring the
appeal within time.;
Provided further that no appeal shall be entertai ned by such authority unless it is
satisfied that twenty percentum of the tax assess ed or such amount of tax as the
appellant may admit to be due from him, whichever is greater, has been paid.
(2) Subject to such rule as may be prescribed the authority mentioned in sub- section
(1) may, in disposing of an appeal –
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(a) Confirm, reduce, enhance or annul the order of assessment, interest or penalty or all;
or
(b) Set aside the order of assessment interest or p enalty, or all, and direct the assessing
authority to make a fresh assessment after making such further inquiry as may be directed
by the appellate authority
22. Revision – Subject to such rules as may prescribed an order passed on appeal under
section 21 may, on application, be revised by the Tribunal:
Provided that such an application shall be enterta ined only if made within 90 days
from the date of communication of the order sought to be revised:
Provided further that where the Tribunal is satisf ied that the appellant had
sufficient reason for not filing the application f or revision in time, it may condone
the delay.
23. Power to call for records . - The Commissioner may on his own motion, call f or and
examine the records of any proceeding where an orde r has been passed by any authority
under this Act, other than that mentioned in sectio n 22, for the purposes of satisfying
himself as to the legality or propriety of such order and may after making or causing to be
made such inquiry as he may deem necessary revise a ny order passed by any such
authority
24. Review – Subject to such rules as may prescribed, any aut hority appointed order sub-
section (2) of Section 4 of Jharkhand Value Added T ax Act, 2005 (Act 05, 2006) or the
Tribunal may review any order passed by it.
Provided that no such review if it has effect of enhancing the tax or penalty or both,
shall be made without giving the proprietor a reasonable opportunity of being heard.
25. Refund – Any amount paid by the proprietor in excess of amount finally determined
either on assessment under section 9 or on an order in appeal, revision or review shall
be refunded to him in the manner prescribed.
26. Offences and Penalties. – (1) If a proprietor, which shall for the purpose of this section,
include an employee, the manager or every person wh o was incharge or responsible for
the management of the hotel at the time of commission of the offence -
(a) fails or neglects to maintain accounts and registers, issues bill or cash memos as provided
in this Act and rules framed thereunder; or
(b) fails or neglects to furnish any information or pro duce books of account, registers and
documents in course of inspection; or
(c) fails to submit returns or pay tax and penalty required under sections 7 and 8; or
(d) obstructs any authority in the performance of duty under this Act shall be punished with
imprisonment of either description for a tern which may extend to six months or with fine
which may extend to five thousand rupees or with both.
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(2) (a) No court shall take cognizance of any offen ce under this Act or the rule made
thereunder except with the previous sanction of the Commissioner; and
(b) No court inferior to that of Judicial Magistrate of the 1 st Class shall try any offence
under this Act ;
(3) Notwithstanding anything contained in the Code of Criminal Procedure, 1973
( Act II of 1974), all offences punishable under s ub-section (1)shall be cognizable
and bailable.
27. Compounding of offences :- (1) The prescribed authority may either before or after the
institution of proceedings under section 25, accept from a proprietor charged with
an offence under the said section or under any rules made under this Act , by way of
composition of the offence, a sum not exceeding two thousand rupees.
(2) On payment of such sum as may be determined by the prescribed authority under
sub-section (1), no further proceeding shall be taken against the proprietor in respect of
the same offence.
28. Bar to certain proceedings. – No suit, prosecution or other legal proceeding shall lie
against the State Government or any authority or officer of the State Government for
anything done which is in good faith done or intended to be done in pursuance of
the provisions of this Act and Rules made thereunder.
29. Power to make rules – (1) The State Government by notification in the official Gazette,
make rules consistent with the provisions of this A ct for the purpose of carrying out the
provisions of this Act.
(2) Every rule made under this Act shall be laid a s soon as may be after it is made,
before each house of the state Legislature while it is in session for a total period of
fourteen days which may be comprised in one session or in two successive sessions, and
if before expiry of the session in which it is so l aid or the session immediately following
both the Houses agree in making any modification in the rule or both the Houses agree
that the rules should not be made, the rules shall thereafter have effect only in such
modified form or be or no effect as the case may be , however, that any such modification
or annulment shall be without prejudice to the vali dity of anything previously done under
that rule.
30. Repeal and savings:- (1) The Bihar Taxation on Luxuries and Hotel Act, 1 988 (Bihar
Act 5 of 1988) , Rules made thereunder and Notifications issued thereunder as adopted in
the State of Jharkhand are hereby repealed from the date of commencement of this Act.
(2) The repeal shall not;
(a) Revive anything not in force or existing at the time of which the repeal takes effect; or
(b) affect any right, title, obligation, or liability a lready acquired, accrued or incurred for
anything done or suffered in the respect of the per iod immediately preceding this
repeal; or
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(c) Affect any penalty, forfeiture or punishment in curred or inflicted in respect of any
offence or violation committed under the provisions of the repealed Act; or
(d) Affect any investigation, inquiry, assessment, proceeding, any other legal proceeding
or remedy instituted, continued or enforced under t he repealed Act and any such
penalty, forfeiture or punishment as aforesaid or any proceeding or remedy instituted,
continued, or enforced under the repealed act shall be deemed to be instituted,
continued or enforced under the corresponding provisions of this Act .
(3) All rules, orders and appointments made and not ifications published, certificates
granted, powers conferred and other things done und er the repealed Act and in force on
the commencement of this Act , so far they are not inconsistent with or until they are not
modified, superseded or cancelled under this Act b e deemed to have been respectively
made, published, granted, conferred or done under this Act .
(4) Any reference to any Section of the repealed Ac t in any rule, notification, regulation
or circular shall be deemed to refer to the relevan t corresponding Section of this Act , so
far as these are not in consistent with this Act u ntil necessary amendments are made in
such rule, notification, regulation or circular.
(5) The limitations provided in this Act shall appl y prospectively, and all events occurred
and all issues arose prior to the date of commencem ent of this Act, shall be governed by
the limitations provided or the provisions contained in the repeated Act.
31. Removal of difficulty :- If any difficulty arises in giving effect to the provisions of this
Act , the State Government may, as occasion may req uire, by order not inconsistent with
this Act and rules made thereunder, do anything wh ich appears to it necessary for the
purpose of removing the difficulty.
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SCHEDULE
[See Section 3(1)]
Sl. No. Description(s) Rate(s) of Tax
(1) (2) (3)
1. When the rent of a room of a hotel exceeds Rs. 200 per
day, but does not exceed Rs. 800.
8%
2. When the rent of a room of a hotel exceeds Rs. 800 per
day, but does not exceed Rs. 3000.
12.5%
3. When the rent of a room of a hotel exceeds Rs. 3000 per
day.
8%
4. In case the rent of a hotel exceeds Rs. 3000 a day, for a
Banquet Hall, or a Marriage Hall or a House or a
Restaurant or a Hall or for any Building/ premises
including such premises/field/ courtyard attached o r
annexed to them; whether such premises are open or
otherwise.
12.5%