Mumbai, Dt.25.03.2009, No.LTR-2009/ 1/Adm-29/ B-139 , Trade Cir. No. 11 T of 2009
Sub: Luxury Tax on luxuries provided in hotels from 1st May 2004 to 30th April 2005.
Ref: 1) Notification No.LTA-1090/ 179/ Taxation-2 dated 21st January, 1992.
2) Notification No.LTA-1090/ CR-47/ Taxation-2 dated 18th November, 2008
Sub-section (1) of section 22 of the Maharashtra Tax on Luxuries Act, 1987 empowers the Government of Maharashtra to exempt any specified class of luxuries provided in a hotel from payment of the whole or any part of tax payable if it is necessary to do so in the public interest.
2. It has been decided by Notification dated 18th November, 2008 to exempt the Luxury Tax in excess of six per cent on the luxuries provided during the period from 1st May, 2004 to 30th April, 2005, in hotels which are covered by clause ( c) of sub-section (2) of section 3 of the Maharashtra Tax on Luxuries Act, 1987.
3. To avail this exemption, certain conditions have been prescribed.
(a) The claimant dealer is required to have collected tax not in excess of six per cent. from the customer in the bill, cash memo or invoice issued to customer, i.e. The amount of tax paid by the dealer in excess of six per cent. should not have been collected from the customer.
(b) If the amount mentioned in the bill, cash memo or invoice issued is inclusive of the tax, then it must be considered that the tax collection is made from the customer is of ten per cent.
(c) The amount of tax paid by the dealer in excess of six per cent, shall not be refunded back but has to be adjusted against the tax liability of the dealer for any subsequent period.
4. This circular cannot be made use of for legal interpretation of provisions of law as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification.
5. You are requested to bring the contents of this circular to the notice of the members of your association.
Commissioner of Sales Tax,
Maharashtra State, Mumbai.