The uttar pradesh taxation and land revenue laws act, 1975

299 
 
THE UTTAR PRADESH TAXATION AND LAND REVENUE LAWS ACT, 1975 
[U.P. ACT NO. 8 OF 1975] 
(As passed by the Uttar Pradesh Legislature) 
AN  
ACT 
 to provide for the imposition of a tax on luxuries in hotels and for amendment of 
certain taxation and land revenue laws. 
 IT IS HEREBY enacted in the Twenty-sixth Year of the Republic of India as follows :- 
CHAPTER I 
PRELIMINARY 
 
Short title and 
extent 
1. (1) This Act may be called the Uttar Pradesh Taxation and Land Revenue Laws 
Act, 1975. 
(2) It extends to the whole of Uttar Pradesh. 
 
  CHAPTER II 
IMPOSITION OF LUXURIES TAX 
Commencement 2. This Chapter shall come into force on such date as the State Government may 
by notification in the Gazette appoint in that behalf. 
 
[Definitions 3. In this Chapter, unless the context otherwise requires :- 
(a) “American plan” means the tariff plan in which the rent of the room 
includes the charges for the breakfast the lunch and the dinner and may include 
the charges for the evening tea; 
(b) “Continental Plan” means the tariff plan in which  the rent for the room 
includes the charges for the breakfast; 
[(c)“hotel” includes a residential unit (including a tent made unit) 
wherein rooms are provided to customers on rent and it also includes 
conference hall, marriage hall, community hall, mandap,  club, lodge, 
tentage resort and also space provided on rent by the owners of open 
space for business purposes, but does not include approved units under 
paying guest scheme of the department of touris m of the Uttarakhand 
Government;]1 
(d) “Luxuries” means  such amenities as are provided in a hotel to the 
occupants of such rooms or suites therein as carry a rent of rupees one thousand 
or more per day; 
(e) “Luxury Tax” or “the tax” means the tax levied under section 4; 
(f) “Modified American Plan” means the t ariff plan in which the rent of the 
room includes the charges for the breakfast and one meal, either lunch or 
dinner; 
(g) “Proprietor” meant the owner of the ho tel and includes the person, who, 
for the time being is incharge of the management of the hotel; 
 
1. Substituted by section 2 of Uttarakhand Act No.17 of 2011. 
 
300 
 
[The Uttar Pradesh Taxation and Land Revenue Laws Act, 1975]    [Section 4-4A] 
 
  [(h) “rent” means the aggregate of all charges, by whatever name 
called actually realized from the occupiers of rooms or suites of rooms in 
a hotel and for business purposes providing conference hall, marriage 
hall, community hall, mandap, club, lodge, tentage resort and open space 
and includes air -conditioning, cooler, heater, geyser, blower, telephone, 
television, radio, package deal, music, entertainment, additional bed, 
summing pool, SPA, health oriented other programmes, beauty parlour 
and linen made items but does not include charges of food or drinks or 
charges of items on which commercial tax under the U ttarakhand Value 
Added Tax Act, 2005 is payable.]2 
Explanation—1- Irrespective of the number of persons staying in a room or 
suite the tax shall be levied, considering the room or the suit as a unit. Wherever 
a composite rate of charges has been fixed by t he proprietor including charges 
of accommodation, food and drinks  and the like under the various tariff plans 
such as, Continental, American or Modified American Plan, the tax under this 
Act shall not be levied on that part of such charges on which Trade T ax is 
leviable under the Uttar Pradesh Trade Tax Act, 1948. 
Explanation—2- Wherever the charges are realized by the proprietor on the 
basis of a rate, other than the daily rate, the assessment of the tax, shall be made 
on the average daily charges calculat ed on the basis of the total period of use of 
the room or suite. 
Explanation –3- Wherever the proprietor gives any kind of discount and 
realize charges at a different rate than the published or declared rate of tariff for 
the rooms or suits, the tax shall be levied on the charges actually realized and 
not on the charges published or declared by the proprietor.]1 
 
Levy of tax 4. [(1)  Luxury tax shall be payable at the following rate by every 
person who occupies any room or suite of rooms- 
 
 rent per day rate of luxury tax 
(a) Rs. 1000 to 3500 5 percent 
(b) above Rs. 3500 10 percent 
 
(2) Providing for business purposes conference hall, marriage hall, 
community hall, mandap, club, lodge, tentage resort and open space, 5 
percent of the rent, where the rent is more than  Rs. 10000.00 per day.]3 
 
[Exemption 
and deferment 
of tax 
4-A (1) Subject to such conditions as it may impose, the State Government may, 
if it is necessary so to do on the public interest, by notification, exempt any 
class of hotels or any specific class of luxuries provided in a hotel from payment 
of the whole or any part of the tax payable under this Act or allow for deferment 
of the payment of the whole or any part of such tax, for a period not exceeding 
five years. 
 
 
1. Subs. by section 4 of U.P. Act No. 34 of 1999. 
2. Substituted by section 2 of Uttarakhand Act No.17 of 2011. 
3. Subs.  by section 3 ibid. 
301 
 
[The Uttar Pradesh Taxation and Land Revenue Laws Act, 1975]    [Section 5-7] 
 
  (2) Where a proprietor has availed of any exemption or defermen t under 
sub-section (1) and any of the conditions for such exemption or deferment has 
not been complied with by him for any reason whatsoever, then, such proprietor 
shall, be liable to pay the tax for the period of exemption or deferment as if such 
exemption or deferment had not been allowed to him.]1 
 
Manner of 
payment 
5. (1) The tax shall be collected along  with rent by the proprietor of the hotel 
from the persons liable to pay it and shall be paid by the proprietor to the State 
Government in such manner as may be prescribed. 
(2) If any proprietor fails to pay the tax within the prescribed period he shall 
be liable to pay simple interest at the rate of [15 per cent per annum ]2 on the 
amount remaining unpaid, and such interest shall be added to the amount of tax 
and deemed for all purposes to be part of the tax: 
Provided that where as a result of an order passed on appeal the amount of 
tax is varied the interest shall be recalculated. 
 
 
Assessment of 
tax 
6. (1) The tax shall be assessed by such authority as may be prescribed. 
(2) The procedure of assessment and of any appeal from any order of 
assessment and the powers of the assessing and appellate authorities shall be 
such as may be prescribed. 
[(3) Registration:- any owner of the hotel who is liable for l uxury tax 
under this Act, shall get the hotel registered within such time and in such 
manner as may be prescribed : 
 Provided that the owner of the hotel who is liable for luxury tax shall 
be allowed 30 days time from the time he is first liable to pay luxury tax : 
Provided further that the hotel owners who are paying luxury tax 
shall apply for registration within 30 days from the date of the 
commencement of this Act in such manner as may be prescribed.]3 
 
 
Payment of 
composition 
fee in lieu of 
tax 
7. [(1) Notwithstanding anything to the contrary in this chapter, the 
assessing authority may permit the owner of the hotel to pay in lieu of the 
tax payable by him under this chapter a lump sum by way of composition 
subject to such conditions as may be prescribed. 
(2)  Composition scheme:- All registered hotels whose rent of each 
room is from Rs. 1000.00 to Rs. 2000.00 and the number of rooms is up 
to 20, may, subject to the provisions of this Act opt for lump sum 
composition amount in lieu of tax. 
 
 
 
1. Subs. by section 5 of U.P. Act No. 34 of 1999. 
2. Substituted by section 4 of Uttarakhand Act No.17 of 2011. 
3. Subs.  by section 5 ibid. 
302 
 
[The Uttar Pradesh Taxation and Land Revenue Laws Act, 1975]    [Section 8-10] 
 
  (3) Where a composition money for a period has been  accepted in 
respect of any hotel, any change in the rate of tax which may come into 
force after the date of such agreement shall have the effect of making a 
proportionate change in the lump sum or the rate agreed upon in relation 
to that part of the asses sment during which the changed rate remains in 
force. 
(4) Where the State Government is of the opinion that it is no longer 
in the public interest to continue any scheme of lump sum composition 
amount in lieu of tax, it may at any time during the period, w ithdraw 
such scheme and in that case if a lump sum amount of composition 
money has been fixed, a part of it in proportion to the part of the period 
during which the scheme remained in force shall be payable by the hotel 
owner.]1 
 
Inspection of 
books and 
accounts 
8.  The assessing authority or any other officer authorized by him in that 
behalf may, with a view to satisfying itself or himself that the provisions of this 
Chapter or rules made thereunder are being complied with— 
(a) enter any hotel at any reasonable time; 
(b) require any proprietor of a hotel to produce before him any books, 
accounts or other documents; 
(c) inspect any books, accounts or other documents; and 
(d) inspect the rooms to ascertain their occupancy. 
 
Recovery of 
sums as arrears  
of land revenue 
 
9. Without prejudice to the provisions of section 7, any sums payable under 
section 5, shall on the certificate of the assessing authority be recoverable from 
the proprietor as an arrear of land revenue. 
Penalty 10. (1) Without prejudice to the provisions of  sub-section (2) of section 5, if 
any person fails to pay any sum payable under section 5 or section 7 within the 
prescribed period he shall, on conviction be liable to pay a fine not exceeding 
rupees five thousand and when the offence is a continuing one,  with a further 
fine not exceeding rupees one hundred per day during which the offence 
continues. 
(2) Whoever fails to supply any information which he is required to supply 
under any rules made under this Chapter or knowingly supplies false 
information shall be punishable with fine which may extend to five thousand 
rupees. 
[(3) If any person responsible for obtaining registration under this 
Act, runs or continues to run the hotel without registration under the 
provisions of section 6, shall, from the date he is liable for registration, be 
liable for penalty of two hundred rupees for each month or part thereof 
for default for the first three months and after the first three months five 
hundred rupees for each month or part thereof in which default 
continues.]2  
  
1. Substituted by section 6 of Uttarakhand Act No.17 of 2011. 
2. Added  by section 7 ibid. 
303 
 
[The Uttar Pradesh Taxation and Land Revenue Laws Act, 1975]    [Section 11-13] 
 
Offences by 
companies 
11. (1) If the person committing an offence under this Chapte r is a company, 
every person,  who, at the time the offence was committed was in charge of, and 
was responsible to the company for the conduct of the business of the company, 
as well as the company, shall be deemed to be guilty of the offence and shall be 
liable to be proceeded against and punished accordingly: 
Provided that nothing contained in this sub -section shall render any such 
person liable to any punishment provided in this Chapter if he proves that the 
offence was committed without his knowledge or  that he exercised all due 
diligence to prevent the commission of such offence. 
(2) Notwithstanding anything contained in sub -section (1), where an 
offence under this Chapter is committed by a company and it is proved that the 
offence has been committed with the consent or connivance of, or is attributable 
to any neglect on the part of any director, ma nager, secretary or other offic er of 
the company, such director, manager, secretary or other officer shall also be 
deemed guilty of that offence and shall be liable to be proceeded against and 
punished accordingly. 
Explanation---For the purposes of this section- -- 
(a) "company" means a body corporate and includes a firm or other 
association of individuals, and  
(b) "Director", in relation to a firm, means a partner in the firm.  
 
Protection of 
action taken 
under this 
Chapter 
12. No suit, prosecution or other legal proceedings shall lie against the State 
Government or  any officer of the State Government for anything which is in 
good faith done or intended to be  done in pursuance of the provisions of this 
Chapter or the rules made thereunder. 
 
Power to make 
rules 
13. (1) The State Government may by notification in the Gazette, make rules 
for carrying out the purposes of the provisions of this Chapter and such ru les 
may, among other things, provide for the levy of fees in respect of proceeding s 
referred to in section 6. 
(2) All rules made under this Chapter shall, as soon as may be after they are 
made, be laid before each house of the State Legislature, while it is in session 
for a total period of not less t han thirty days, extending in it s one session or 
more than one successive sessions, and shall unless some later date is appointed, 
take effect from the date of their publication in the Gazette subject to such 
modifications or amendments as the two Houses of the Legislature may during 
the said period, agree to make, so, however, that any such modification or 
amendment shall be without prejudice to the validity of anything previously 
done thereunder. 
 

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