Section 4 in The Rajasthan Tax on Luxuries (in Hotels and Lodging Houses) Act, 1990
4. Charge, rate of tax and prohibition of unauthorised collections.
(1)The tax payable by a hotelier under this Act shall be levied at such rate not exceeding twenty five per cent of his turnover, as notified from time to time by the State Government:Provided that different rates of tax may be notified for different slabs of tariff:Provided further that, where the charges are levied otherwise than on daily basis or per room then the charges for determining the tax liability under this section shall be computed proportionately for a day and per room based on the total period of occupation of the accommodation for which the charges are made according to the system/practice of the hotel.(2)Where, in addition ti 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 charges shall be deemed to be part of the charges for luxury provided in the hotel.[(3) Where Luxury provided in a hotel to any person is not charged at all, or is charged at a concessional rate, then the tax chargeable in the cases of concessional rate shall be based on actual billing and not on fixed and published rates or charges for accommodation and other services as referred to in clause (i) of sub - section (1) of section 2, and in case where luxury is provided free of charge, no tax shall be chargeable] [Substituted by Rajasthan 9 of l997, w.e.f. 30-3-1997.].(4)Where extra beds or any other additional facilities are provided in a room of a hotel, tax shall also be levied and recovered on the charges of such extra beds or additional facilities.(5)(i)The tax shall not be levied and payable in respect of the turnover of receipts for supply of food and drinks, on the sale of which the hotelier is liable to pay sales tax under the Sales Tax Act.(ii)Where composite charges for boarding, lodging and other amenities are recoverable in a hotel, tax under this Act shall not be levied on that part of such charges on which sales tax is leviable under the Sales Tax Act.(6)No person shall collect any sum by way of tax in respect of his business to the extent he is not liable to pay it under the Act.(7)No person who is not liable to pay way of tax in respect of Luxury provided in any hotel, shall collect any sum by way of tax from any other person and no hotelier shall collect any amount by way of tax in excess of the amount of tax payable by him under the provisions of this Act.
