Section 4 in The Gujarat Tax on Luxuries (Hotels and Lodging Houses) Act, 1977
4. Mode of collection of Tax.
(1)Where the rate of charges for luxury provided in a hotel is inclusive of the charges for food or drink or other amenities, if any (being amenities referred to in clause (e) of section (2),) then the Collector may, from time to time, after giving the opportunity of being heard, fix separate rates of charges for such luxury and for food or drink or other amenities, if any, being amenities referred to in clause (e) of section 2 for the purpose of calculating the tax under this Act.(2)Where, in addition to the charges for luxury provided in a hotel, service charges are levied and appropriated to the proprietor and not paid to the staff, then, such charges shall be deemed to be part of the charges for luxury provided in a hotel.(3)[ Where luxury provided in a hotel in any room to any person (not being an employee of the hotel) is not charged at all or is charged at a concessional rate, then, there shall be levied and collected the tax on such luxury, as if full charges for such luxury were paid to the proprietor of the hotel.] [Sub-section (3) inserted by Gujarat 13 of 2006, dated 31st March, 2006 (w.e.f 01-04-2006)][***] [Sub-sections (4) was deleted by Gujarat 2 of 1997, section 4 (w.r.e.f. 18-06-1996).](5)where any proprietor fails or neglects to collect the tax payable under this Act, the tax shall be paid by the proprietor as if the tax was recovered by the proprietor from the person to whom the luxury was provided and who was accordingly liable to pay the same.
