Circular No.512 – Income Tax The levy of tax on expenditure incurred in certain hotels came into force from 1st November, 1987. The Expenditure Tax Act, 1987 provides for a levy at the rate of 10 per cent of the ‘chargeable expenditure’ incurred by a person in a hotel. Hotels where such a tax is levied on a person incurring chargeable expenditure are those where the room charges for any unit of accommodation
