The Manipur tax on Luxuries (Hotels and Lodging Houses) Act, 2000

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Date of Pubhcatlon 52m 151..
The Manipur Tax OU'LQXQfi'eS 1(Hhtels and Loiiging Houses) 59$}, 2000.
Aug.
. 40‘
to provide for imposition of tax on the luxuries~ in hotels and lodging houses and for
matters connected therewith.
Be it enacted by the Legislature of Manipur in the Fifty-first Year of the Republic
of India as follows :
I . Short title, extent and commencement :—
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This Act may be called the Manipur Tax on Luxuries (Hotels and Lodging
Houses) Act, 2000. C .
It extends to the whole of the State of Manipur.
It shall come into force on such date as the State Government may, by
notification in the official Gazette, appoint. 4
Definitions. — In this Act, unless the context otherwise requires, -
“Assessing Officer” in relation to any hotelier means the authority
competent to assess the hotelier in accordance with section 5 of this Act;
“business” includes the activity of providing residential accommodation
and any other service in connection with, or incidental or ancillary to, such
activity of providing residential accommodation, by a hotelier for
monetary consideration;
“Commissioner” means the Commissioner of Taxes, Manipur;
“concessional rate” in relation to a luxury provided in a hotel, means a rate
lower than the normal rate fixed by any Government, authority, or under
any law for the time being in force;
“hotel” includes a residential accommodation, a lodging house, an inn, a
public house or a building or part of a building, where residential
accommodation is provided by way of business;
“hotelier” means, in relation to a hotel, the person who'owns the hotel and
includes a person who for the time being is a charge of the management of
the hotel; - ‘
“luxury provided in a hotel” means accommodation and other services
provided in a hotel, the rate of charges for which including the charges for
air-conditioning, telephone, television, radio, music, entertainment, extra
- beds and the like, is one hundred rupees per person per day or more; but
does not include the supply of food and beverages drinks where such
supply is separately charged for;
“person” includes any company 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 Govemment;
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“place of business” includes an office, or any other place which a hotelier
uses for the purpose of his business or where he keeps his books of
accounts;
“prescribed” means prescribed by rules made under this Act;
“receipt” means the amount of monetary consideration received or
receivable by a hotelier or by his agent for any luxury provided in a hotel;
“registered hotelier” means a hotelier registered under section 6 of this
Act; ‘
“rule” means rules made under this Act;
“State” means the State of Manipur; -
“”tax means the tax levied on luxuries provided1n 3 hotel payable under *
this Act;
“turnover of receipts” means the aggregate of the amounts of monetary '
consideration received or receivable by a hotelier or by his agent in respect
of the luxuries providedin a hotel during a given period.
Liability to tax. ——
Subject to the provisions of this Act and the rules made thereunder, there ,
shall be levied a tax on the turnover of receipts of a hotelier.
There shall be levied a tax on the turnover of receipts at the following
rates, namely: - v
(a) where the charge for luxury provided nil;
- in a hotelis less than fifty rupees per _
day per person;
(b) where the charge for luxury provided ten per centum of
in a hotel is one hundred rupees or more such turnover of
but does not exceed one hundred rupees receipts;
per day per person; ' ~
(0) where the charge for luxury provided fifteen per centum
in a hotel exceeds one hundred rupees of such turnover of
but does not exceed two hundred rupees receipts;
per day per person;
((1) Where the charge for luxury provided twenty per centum
in a hotel exceeds two hundred rupees of such turnover of
per day per person; receipts;
Provided that where the charges are levied otherwise than on daily basis or per person,
then the charges for determining the tax liability under this section shall be computed
proportionately for a day and per person based on the total period of occupation of the
accommodation for which the charges are made and the number of persons actually
occupying or permitted to occupy according to the rules or practice of the hotel.
‘(3) Where, in addition to the charges for luxury provided in a hotel, service
charges are levied and appropriated by the hotelier and not paid to the staff
then such service charges shall be deemed to be part of the charges for
luxury provided in the hotel.
the hotel) is not charged at all, or is charged at a concessional rate,nevertheless there shall be levied and collected the tax on such luxury atthe rates specified in sub-section(2), as if full charges for such luxury werepaid to the hotelier. .(5) Where luxury provided in a hotel for a specified number of persons isshared by more than the number specified, then, unless the additionalperson is a child occupying the room along with his parent or guardian andno separate charge is recovered for the child, in addition to the tax leviedfor luxury provided to the specified number of-persons, there shall belevied and recovered separately the tax in respect of the charges made forthe extra persons accommodated. I . .(6) The State Government, may, by notification in the official Gazette andsubject to the condition of previous publication, add or omit or reduce orincrease any rate of tax specified in sub-section (2) and thereupon suchrate or rates of tax shall be deemed to have been amended accordingly.
(4) Where luxury provided in a hotel to any person (not being an employee of
Explanation :- For the purpose of this sub—section, ”child” means a person who has notcompleted twelve years of age. ’
4. Liability ofhotelier to pay tax: - '-(1) Subject to the provisions of this Act and the rules made thereunder, thereshall be paid by every hotelier who is liable to‘ pay tax under this Act thetax or taxes leviable' in accordance with theprovisions Of this Act.(2) If a person other than the owner (includingvpart-owner) is for the timebeing in charge of the hotel, then such person and the owner (includingpart-owner) shall jointly and severally be liable to pay the tax.
5. ~ Exercise ofpowers and authorities:- -The authorities competent to assess, recover and enforce payment of tax under theManipur Sales Tax Act, 1990, hereinafter referred to‘as. the sales tax law, shall,within their local jurisdiction under the sales tax, law, be competent to assess,
within such jurisdiction and, subject to the provisions of this Act and the rules,notifications and orders made thereunder, the said authorities,'for this purpose,may exercise all or any of the powers they have under the sales tax law, and theprovisions of the sales tax law, including provisions relating to inspectionsasSessment, registration of the transferee of a business, imposition of tax liabilityof a person carrying on business on theh'transferee of, or successor to, suchbusiness, transfer of liability of any firm or Hindu undivided family to pay tax inthe event of dissolution of such firm or partition of s'uch family, appeals,revisions, references, refunds, rebates, payment of interest, compounding ofoffences and treatment of documents furnished by dealer as confidential, shallmutatis mutandis apply accordingly.
6. Registration, —
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No hotelier liable to pay the tax under section 3 shall provide
accommodation by way ofbusiness, unless he possesses a valid certificate
of registration as provided by this Act;
Provided that, it shall be lawful for the hotelier to provide or
continue to provide accommodation by way of business if the hotelier has
applied for registration within the prescribed time.
Every hotelier required to possess a Certificate of registration shall apply
in the prescribed form to the assessing officer within thirty days from the
date on [which the hotelier first becomes liable to pay the tax. ;
If the assessing officer, after such enquiry as he deems fit, is satisfied that I
an application for registration is in order he shall register the applicant and
issue to him a certificate of registration in the prescribed form.
The assessing officer may, after considering any information furnished or
' otherwise called for or received under any provisions of this Act, amend
from time to time the certificate of registration.
Where a registered hotelier 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 assessing officer, the latter shall, after 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.
Where the assessing offioer is satisfied that any registered hotelier has
discontinued, transferred or otherwise disposed ofthe activity of providing
accommodation by way of business and has failed to apply under sub-
section(5) for cancellation of certificate of registration, the assessing .5
officer may, after giving the hotelier a reasonable opportunity of the 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 on an
application of the hotelier or otherwise shall not affect the liability of the
hotelier to pay the tax (including any penalty or interest) due for any
period upto the date of cancellation whether such tax (including any
penalty or interest)18 assessed before or after the date of cancellation.
7. Non~transferability of registration Certificate. ~—
Save as otherwise provided in section 9, certificate of registration shall be
personal to the hotelier to whom it is granted and shall not be transferable.
8. ' Information to be furnished regarding changes in business, etc. ——
0') If a hotelier 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
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(b) V discontinues his business, or changes the placethereof or opens a‘ new plaee of busmess or .
(0) changes the name or nature of hIS business, or
(d) enters into a partnership or other assoeiation; in regardto his
. :~business,
he shall within the prescribed time, inform the prescribed authority
accordingly.
Where any such hotelier dies, his executor administrator or other legal. representative or where any such hotelieris a firm and there13 a Changeinthe constitution ofthe firm or the firm1s dissolved every person who Was
a partner thereof, shallin like manner, inform the said authority of such
' death, change1n the constitution or as the casemaybe, dissolution.
Certifieate of registration to continue _in certain circnmstances. —— Where aregistered hotelier. - '
(a) , effects changes1n the name of h1s 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 thereis ehange1n the trustees thereof, or
(d) ' is a guardian of a ward, and thereIS achange1n the guardian, then
merely by- reason of any of the circumstances aforesaid, it shall not
be necessary for the hotelier, or the firm with the changed
constitution, or the new trustees or new guardi.,an to apply for a
fresh certificate of_ registrationand on information being furnished
tin the manner required by section8, the certificate of registration
shall be emended ~ - -
Returns::-
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(7-)
Every registered hotelier shall fuinish returns for schh period, by such
dates, and to such authority, as may beprescribed
If any hotelier, having furnished rettirn 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
Prohibition against collection of tax in certain cases. ——
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,No person shall collect any sum by way oftax in respeetof his business to
the extent that he15 not liable to _pay it under this Act _
No person whoIs not a registeredhotelier and liable to paytax in respect
of luxury provided1n any hotel, shall collect any snm by Way of tax from
any other person and no registered hotelier shall collect anyamount by
way of tax in excess of the amount of tax payable by him under the
provisions of this Act:
Provided that, this sub-section shall not apply where a person is
required to collect such amount of: the tax separatelyin order to comply ,
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“with the conditions and restrictions imposed on him under the provisionsof any law for the time being in force.
Bill or cash memorandumto be issued to customer. ‘— 'A registered hotelier shall issue to the customer or customers a bill or cash'merri'Orandum' serially numbered, signed and dated by him or his servant,manager or agent and showing therein such other particulars as may bepreserib'ed. He shall keep a counterfoil or duplicate of such bill or cashmemorandum duly signed and ‘dated-vand: preserve it for a period of not less 1thanf'e‘i'ghti—years from. the date ofthe transaction.
Accounts. '-‘—— - . . ' ‘ -(1) Every hotelier liable to pay tax under this Act, and every hotelier who is‘ required so to do by the assessing officer bynotice served on him in theprescribed manner shall keep a true account of the luxury provided by him. in the hotel; I 1 ' — ,(2) i "7 71f‘the assessing officer Considers that the account kept are not sufficientlyclear or intelligible to enable him to deterniine whether or not a hotelier is:ir-Iiable to' tax '_during any‘period, -Or are so-"kept as not to enable a proper' scriitiny 0f their'eturhs or the stateme‘nt‘fii'mished, the assessing officermay require such hotelier by noticea-in writing to keep such accounts insuch form or- marinerhas in his opinion is necessary for the purpose of"'pfiiper assessment and-‘Jas he. may, subject to anything that may be' ' prescribed in that behalf, 'in writing direct. ’'(3') The "Co‘mmisSioner‘ may, subject" to suchconditions'or restrictions as maybe prescribed in this behalf, by noticein writing direct any hotelier, or bynotification in the Official Gazette, direct any class of hoteliers to maintainaccounts and records showing such particulars regarding their business in‘such' form,and in such manner, as may be specified by'him;(4) _, Every registered hotelier shall ordinarily keep all his accounts, registers"l. I and documents relating to his businessat the plaCe or places of business“ specified in‘ his Certificate"ef‘regi-stration or, with the previous approval of3V the assessing'officer; at such other place as may be approved by theassessing officer. ,_ " " -. ' V *
7 Hotelier to declare the name of owner of business. ——
Every hetelier, who is liable to pay tax, and: who is a Hindu undivided family, oran association or‘c‘lub ‘o'i' society’or firm or company, or whoearries on businessas the guardian or' trustee or otherwise On‘be'half of another person, shall withinthe period prescribed send to the authority prescribed, a declaration in the manner] prescribed ‘stating'th'e name "of the person or persons who is- owner or who are theowners of the‘hotel. Such'declaration may be revisedr from time to time.
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Imposition of penalty for contravening certainprovisions. ——
(1)
y (2)
. (3)11
V (4)
(5)
If any person —
(a) (i) not being a hotelier to pay tax under this -Act,c011ects any
sum by -'way of tax, or.
(11) being a registered hotelier, e-ollects any amount by way of 1
- tax in excess of the tax payable by him, or
(iii) otherwise collects tax in contravention of the provisions of
section 1 1, or
(b) being a hotelier to pay tax underthis Act, or‘ being a hotelier who
. V' was required so to do by the assessing officer by a notice, served
on him, fails in contravention of’ sub-section (1) of section 13, to
keepi- a='true accbunt of his turnover of receipts or ”fails when
directed so to do under that ‘sectiOné 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: _ z
(A)where there has been contravention referredtoin siib-clause ( 1) or
(ii) of clause (a), a penalty of an am‘Ount not exceeding two
thousand rupees or double the si-rm collected by way of tax,
’- whicheverlS fess, - ' ' ,
- (B)? v-;W’1'iere there has- been a contravention referred to in subeclause (ii)
of clause (a) or in clause (b), penalty of an amount not exceeding
two thousandirupees, and in addiitiOn any sum collected by the
"3 person by way of tax in contravention of section_-,’H shall be
forfeited to the State Government. -
if the assessing officer in the course ofany proceedingtinder this Act or
otherWise, has reason to believe that any person has become liable to a
penaltyV'or forfeiture or both penalty an'd‘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
any sum. as provided in sub—section (1) should not be imposed on him.
The assessing officer shal' thereupon hold an enquiry and shall make such
order as he thinks fit.
No prosecution for an offence under this Act shall be instituted1n respect
of thesame facts on which a penalty has been imposed under. this section.
When any order of forfeiture is made, the assessing officer-shal-l- publish or
cause to be “published "a notice thereof’for. the information of’the persons
concerned giving s11ch details andin811911 manner asmaybe prescribed.
Payment of tax —
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(3)
Tax shall be paidin the manner herein provided, and at sach intervals as
may beprescribed ‘ "
A registered hotelier furnishingreturn asreqnired by sub-Vsection (1) of
section 10, shall, first pay into a Government treasury, in. the prescribed
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1(3)
(4)
(5)
(6)"
manner, whole of the amount of tax due from him according to such
return
_ A registered hotelier a revised return in accordance with sub-section (2) of
section 10, which revised return shows that a larger amount of tax than
already paid is payahie shall first pay into a Government treasury the
extra amount of tax:
(a), The amount of tax —
(i) due when returns have been furnished without fu11 payment
V thereof or
(b) the amount of penalty levied undersection 15,or
(c) .the sum (if any) forfeited to the State Government under section
15,
shall be paid by the hotelier or the pei‘son liable therefore into a
Government treasury by such date as may be specified111; anotice issued
by the assessing officer for this purpose, being a date not earlier than thirty
days from the date ofservice of the notice ., . ‘
Provided that, the assessing officer may, inrespect of any
particular hotelier or person, and for reasons to be recorded in writing
allow him to pay the tax, interest .01- penalty (if any) or the sum forfeited,
by instalments. .1 v? , .
Any tax,pena1ty or: inte1estor sum forfeited, which remains unpaid after
the date specified111- the notice for payment, and any instalment not duly
paid, shall be recoverable as an. arrEar- of iand revenue;
Notwithstanding anything contained in 5thi$ Act or many: other law for the
time being in force, whereany sum coliectedby a- person by way of tax in
contravention of sectionx;,.11, 'is-forfeited; to: the State Gewemment under
. section15 and is recovered from him, such. payment 01 recovery shall
discharge him of the liability to refund the sum to the person from whom it
. was so collected;
A refund of such sum 01any part thereof can be claimed from
Government by the person from whom it was realised by way of tax,
provided that an application for such claim is made byhim1n writing in
the prescribed form to the assessing officer, within one year from the date
ofthe order of forfeiture. On receipt ofany such application, the assessing
officer shall hold suchmquiry as he deemsfit, and if he15 satisfied that the
claim is valid and admissible and that the amount so-elaimed as refund
. > was actual‘ly paid in Government treasury or recovered, he shall refund the
sum or any part thereof, which is found due to the person concerned.
Rounding off the tax, etc — - . ~
The amount of tax,pena1ty, interest, composition money, fine or any other sum
payable under the provisions of this Act, shall be rounded off to the nearest rupee
and, for this purpose, where such amount contains a part of a rupee consisting of
paise, then, if such part is fifty paise or more, it shall be increased to one rupee,and if such pan is less than fifty paise, it shall be ignored : 'Provided that, nothing in this section shall apply for the purpose ofcollection by the hotelier of any amount by way of tax under this Act.
Offences and penalties. — ,
Whoever, knowingly furnishes a false return shall, on conviction, bepunished -
(1)
(2)
(3)
(4)
(5)
(i)
(ii)
in case where the amount of tax, Which could have been evaded ifthe false return had been accepted as true, exceeds Rs.10,000/-
with rigorous imprisonment for a term Which shall not be less than- six months but which may extend to three years and with fine;in any other case, with rigorous imprisonment for a term whichshall not be less than three months but Which may extend to oneyear and with fine.
Whoever; knowingly keeps false account of the receipts incontravention of section 13, shall, on conviction, be punishedv'With
rigorous imprisonment for a term which shall not be less » than tiff‘e'e?months butwhich may extend to one year and with fine.
Whoever—
(i) willfully attempts, in any manner whatsoever, to evade any taxliviable under this Act, or ‘
(ii) willfully attempts, in any manner whatsoever, to evade anypayment of any tax or penalty or interest under this Act, shall, on“conviction, be punished —
(a) in case where the amount involved exceeds Rs.20,000/-
during period of half — year, with rigorous imprisonment
for a term which shall not be less than six months butwhich may extend to three years and with fine;
(b) in any other case, with rigorous imprisonment for a termwhich shall not be less than three months but which may
extend to one year and with fine.
Whoeverm
aids or’ abets any person in commission of any act specified in sub—section' ('1) to (3), shall, on conviction, be punished with rigorous imprisonmentwhich shall not be less- than three months but which’may extend to oneyear and with fine.
Whoever—
(a) carries on business without being registered in willfialcontravention of section 6, or
(b) fails, Without sufficient cause, to furnish any information required
by section 8, or
(c) fails, without sufficient cause, to furnish any return as required by
section 10, by the date and in the manner prescribed, or
(d) contravenes, without reasonable cause, any of the manner
prescribed, or
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(6)
(7)
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(1)
(3)
- (4)
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(e) fails, without sufficient cause, to issue a bill or cash membrandum
as required under section 12, or
(t) fails, without sufficient cause, when directed under section 13, to
keep any account or record, in accordance with such direction, or
'(g) voluntarily obstructs any officer making inspection Or search or
seizure, shall, on conviction, be punished with imprisonment for a
term which may extend to one year and With fine.
Whoever commits any of the acts specified in sub—section (1) to (5) and
the offence is a continuing one under_ any of the provisions of these sub-
section, shall, on conviction, be punished With a daily fine of not less than
rupees one hundred during the period of the continuance of the offence, in
addition to the punishment provided under this section
Notwithstanding anything containedin sub-section (1) to (6), no person
shall be proceeded against under these sub—sections for the acts referred to
therein, if the total amount of tax evaded or attempted to be evadedis less
than rupees two hundred during the period of a half-year.
VNo prosecution for an offence under this Act shall be institutedin respect
of the same facts on which a penalty has been imposed by the assessing
officer underany provisions of this Act.
'Power to make rules. —~
The State GoveMent may by notification in the official Gazette, make
rules to carry out the purposes of this Act.
In particular and without prejudice to the generality of the foregoing
provision, the State Government may make rules tbr all or any of the
following matters,na_me1y.:—
(a) the. manner of payment of tax;
(b) the form111 which accounts and registers shall be maintained by a
hotelier; ‘
(c) any other matter which is required or allowed by this Act to be
prescribed. '
The power to make rules, except on the first occasion of the exercise
thereof,sha11 be subject to the condition of the rules being made afier
previoas publication
Every rule made under this Act shall be laid, as soon as may be after it is
made, before the Legislative Assembly while it is in session for a total
period of twenty days Which may be comprisedin one session 01' in two or
more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, the
House agrees in making any modification in the rule or that the rule
should not be made, the rule shall thereafter have effect, only in such
modified form or be of no effect as the case may be; so, however, that any
such modification or annulment shall be without prejudice to the validity
ofanything previously done under that rule.
Power to State Government to delegate certain powers :~ The State Government
may, by notification in the official gazette, delegate the powers exercisable by the
authorities competent in accordance with Section 5 of this Act, except appeals,
revisions, references, refunds and compounding of offences, to such officer or
authority subordinate to the State Government in such circumstances and in such
conditions as may be specified in the said notification.
Power to remove difficulties. —— , . ,
If any difficulty arises in giving effect to the provisions of this Act, the State
Government may, by general or special order, do anything not inconsistent with
such provision which appears to it to be necessary or expedient for the purpose of
removing the difficulty.

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