Section 4 in The Kerala Tax on Luxuries Acts, 1976
4. Levy and collection of luxury tax.
(1)Subject to the provisions of this Act, there shall be levied and collected a tax, herein after called the `luxury tax', in respect of any luxury provided,-(i)in a hotel, house boat, hall, auditorium or kalyanamandapam or including those attached to hotels, clubs, kalyanamandapam and places of the like nature which are rented for accommodation for residence or used for conducting functions, whether public or private, exhibition;(ii)by Direct-To-Home (DTH) Service Provider(iii)in a hospital ; and(iv)in a home stay:Provided that the sub-section shall not apply to(i)halls and auditorium located within the premises of` places of worship' owned by religious institutions;(ii)to the retiring rooms and dormitories in the railway stations, managed by Indian Railways;(iii)to dormitories(2)Luxury tax shall be levied and collected,-(a)in respect of a hotel, for charges of accommodation for residence and other amenities and services provided in the hotel, excluding food and liquor,-(i)at the rate of seven and half percent per room for hotels, in respect of rooms where the gross charges of accommodation for residence and other amenities and services provided above rupees two hundered and upto five hundred per day ;(ii)at the rate of twelve and a half percent for hotels in respect of rooms where the gross charges of accommodation for residence and other amenities and services provided above rupees five hundred or more per day ;Provided that no luxury tax shall be payable, for such charges received in respect of service rendered outside the hotel premises, such as vehicle hire, boat hire and trekking:Provided further that the hire charges received in respect of house boats owned or possessed with right to use it by the hotels shall be liable to tax under the Act.(b)in respect of a house boat, for charges of accommodation for residence and other amenities and services provided, excluding food and liquor, at the rate fifteen per cent ;(c)in respect of a convention centre, hall, Kalyanamandapam, auditorium including those attached to hotels, clubs or places of the like nature, for the charges for accommodation, amenities and services provided excluding food and beverage :(i)at the rate of ten per cent where the gross charges of accommodation and other amenities and services provided is above rupees three thousand and up to rupees ten thousand per day;(ii)at the rate of fifteen per cent where the gross charges of accommodation and other amenities and services provided is above rupees ten thousand and up to rupees twenty thousand per day;(iii)at the rate of twenty per cent where the gross charges of accommodation and other amenities and services provided is above rupees twenty thousand per day.(d)Omitted(e)in respect of a hospital, for charges of accommodation for residence for use of amenities and services, at the rate of ten percent per room where the gross charges, excluding charges of food, medicine and professional services, is one thousand rupees per day or more.(f)in respect of a home stay, for charges of accommodation including use of amenities and services provided at the rate of half per cent where the daily rate of gross charges is rupees one thousand or more.and shall be collectable from the person enjoying the luxury and the luxury tax, if any, collected shall be paid over to the Government.(2A)Notwithstanding anything contained in sub-section (2), there shall be levied a luxury tax at the rate of rupees one hundred per year per member and the same shall be collected by the person responsible for the management of the club, by whatever name called.Explanation: For the purpose of this section, `club' means a club which provides more than two facilities like card room, bar, billiard rooms, snooker room, tennis court, swimming pool, Sauna Jacuzzi and the like, gymnasium, golf course, internet facility, video, video compact disk, digital video disk and computer games and having a membership strength of at least twenty five.(2B)Omitted.(3)The luxury tax shall be collected by the proprietor and paid within such period and in such manner as may be prescribed, into a Government treasury or a Nationalised bank notified by Government in this behalf.(4)In computing the luxury tax, a fraction of a rupee, which is not a multiple of five paise, shall be rounded off to the next higher multiple of five paise.(5)Every Direct-To-Home (DTH) Broadcasting Service Provider in the State shall pay Luxury Tax at the rate of two per cent on the gross charges received or receivable by his every month in any manner including installation charges, subscription charges, recharges, or other charges by whatever name called from the subscribers in the State in respect of the Luxury provided by him.
