The Assam Tax on Luxuries (Hotels and Lodging Houses) (Amendment) Act, 2009
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                                              - Registered No. 768/97

## THE ASSAM GAZETTE

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#### EXTRAORDINARY

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##### PUBLISHED BY THE AUTHORITY

.,-~ 262 m~, "'lf.:l<il<il, 29'5rt~, 2009, 7 m, 1931 (~)

No. 262 Dispur, Saturday, 29th August, 2009, 7th Bhadra, 1931 (S.E.)

GOVERNMENT OF ASSAM

ORDERS BY THE GOVERNOR

LEGISLATIVE DEPARTMENT : : LEGISLATIVE BRANCH

NOTIFICATION

The 29th August, 2009

No.:bGL.72/2004/87 :-- The following Act of the Assam Legislative Assembly which
received the assent of the Governor is hereby published for general i:'.1.formation.

ASSAM ACT NO. XXI OF 2009

(Received the assent of Governor on 26th August, 2009)

THE ASSAM TAX ON LUXURIES (HOTELS AND LODGING HOUSES)

(AMENDMENT) ACT, 2009


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1388

THE ASSAM GAZETTE, EXTRAORDINARY, AUGUST 29, 2009

further to amend the Assam Tax On Luxuries (Hotels and Lodging
Houses) Act, 1989.

Preamble. Whereas it is expedient further to amend the Assam Tax On Assam

Luxuries (Hotels and Lodging Houses)) Act, 1989, hereinafter referred to ActV

of1989.

as the principal Act, in the manner hereinafter appearing;

It is hereby enacted in the Sixtieth Year of the Republic of India as
follows:-                  -

Short title, extent I. (1) This Act may be called the Assam Tax On Luxuries (Hotels and
and commence-

Lodging Houses) (Amendment) Act, 2009.

ment.

(2) It shall have the like extent as the principal Act.
(3) It shall come into force at once.

Amendment of 2. In the principal Act, in the title, long title, preamble and short title for the
title. long title, words "hotels and lodging houses", wherever they occur, the words and
preamble and

punctuation mark "hotels, lodging houses and hospitals" shall be substituted.

short title.

Amendment of 3. In the principal Act, in section 2,-
section 2.

(a) for clause (2), the following shall be substituted, namely:-

"(2) "business" includes the activities of providing accommodation· or
space for residence, marriage, reception, banquets, ceremonies, events,
functions, seminars, conventions, meetings or exhibition-cum-sale and
for medical treatment and any other service in connection with or
ancillary to such activities of providing accommodation or space, for
monetary consideration, whether or not such activities of providing
accommodation or space is carried on with motive to make gain or profit
and whether or not any gain or profit accrues from such activities;" ;

(b) for clause (5), the following shall be substituted, namely:-

"(5) "hotel" means a building or part of a building along with the lawns
thereof, where accommodation or space with or without board is
provided by way of business for a monetary consideration and includes a
lodging house, a luxury boat, a heritage home, an inn, and a public house
but it does not include students' hostel and residential house let out on
monthly rents;

_Explanation._ _l- A club and a holiday resort for which charges are_
collected for providing accommodation whether or not in· !he course of
business shall be deemed to be a hotel for the purpose of this Act.


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THE ASSAM GAZETTE, · EXTRAORDINARY, AUGUST 29, 2009 1389

_Explanation._ _II.- Any premises or part of premises, a marriage hall or a_
community hall or any other place where accommodation or space is
provided, by way of business for a monetary consideration, whether
business activities are conducted in such place regularly or not, shall also
be deemed to be a hotel for the purpose of this Act;

.,

(c) after clause (5), a new clause (5A) shall be inserted, namely:-

"(SA) "hospital" includes a nursing home, therapy centre or any other
treatment centre, by whatever name called, where residential
accommodation with or without board is provided by way of business
for a monetary consideration to any person or his attendant, for the
treatment of such person, but does not include a hospital under control
of the Central Government or the State Government;";

( d) in clause (7), after the after the existing provision, the following
explanation shall be inserted, namely:-

_"Explanation. - Where accommodation or space_ is provided for the
purpose of marriage, reception, banquet, ceremonies, events, functions,
seminars, conventions, meetings or exhibition-cum-sale, luxury
provided in a hotel shall mean the accommodation or space and other
services provided for charges including air conditioning, chairs, tables,
utensils and vessels, shamiana, tent, electricity, water, fuel, interior or
exterior decoration, music systems, orchestra, live telecast, and the
like;";

(e) after clause (7), a new clause (7 A) shall be ins'erted, namely:-

"(7A) "luxury provided in a hospital" means the accommodation

                - provided in a hospital to any ·person or his attendant for charges
including the charges for air conditioning, television or radio, or any
other service provided thereto in connection with the residence but does
not include any charges for food, medidnes, professional medical
services and any medical test;" ;

(f) in clause (9), after the words "a hotelier'', the words " or a proprietor"

shall be inserted;

(g) after clause (10), a new clause (lOA) shall be inserted, nainely: -

"(lOA) "proprietor" in relation to a hospital means the person who owns
the hospital and includes the person who for the time being is in charge
of the management of such hospital;" ;

(h) for clause (11), the following shall be substituted, namely:-

"(11) "receipts" means the amount of monetary consideration received or

. receivable, by-

(a) a hotelier or by his agent in respect of the luxuries provided in a
hotel;


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1390 THE ASSAM GAZETTE, EXTRAORDINARY, AUGUST 29, 2009

(b) a proprietor or by his agent in respect of the luxuries provided in
a hospital;" ; ·

(i) in clause (15), after the words "in a hotel" the words" or in a hospital"

shall be inserted;

(j) for clause (16), the following shall be substituted, namely:-

"(16) "turnover of receipts" means the aggregate of the amounts of
monetary consideration received or receivable during a.given period by,-

(a) a hotelier or by his agent in respect of the luxuries provided in a
hotel;                        -

(b) a proprietor or by his agent in resp~ct of the luxuries provided in a

hospital;" ;

(k) clause (17) shall be omitted.

Amendment of 4. In the principal Act, in section 3,-
section 3.

(i) for sub-section (2), the following shall be substituted, namely:-

"(2) There shall be levied a tax on the turnover of receipts at the following rates,
namely:-

                   - a) where the charge for luxury provided in a N'l
1 .
hotel is less than three hundred rupees per
day per room.

(b) where the charge for luxury provided in a

Five percentum of

hotel is three hundred rupees or more but

such turnover of

does not exceed one thousand rupees per

receipts.

day per room.

(c) where the charge for luxury provided in a

Eight percentum of

hotel exceeds one thousand rupees but

such turnover of

does not exceed two thousand rupees per

receipts.

day per room.

(d) where the charge for luxury provided in a

Twelve percentum of

hotel exceeds two thousand rupees per

such turnover of

day per room.

receipts.

Provided that where the charges are levied otherwise than on daily
basis or per room, then, the charges, for determining the liability to tax
under this section shall be computed proportionately as 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 rules or practice of the hotel." ;

(ii) for sub-section (2A), the following shall be substituted, namely:-


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THE ASSAM GAZETTE, EXTRAORDINARY, AUGUST 29, 2009 1391

"(2A) Notwithstanding anything contained in sub-section (2), there shall
be levied a tax on the turnover of receipts,-

(i) . in respect of a luxury boat and heritage home, at the rate of five per
centum if the charges for luxury provided exceeds two hundred
rupees per day per room;

(ii) in respect of any place where accommodation or space is provided
for marriage, reception ceremonies, events, functions, seminar,
convention, banquet, meeting or exhibition-cum-sale, at the rate of
eight per centum if the charges for luxury provided exceeds five
thousand rupees per day;"

(iii) after sub-section (7), a new sub-section (8) shall be inserted, namely:-

"(8)The State Government may, by notification in the Official Gazette,
vary the rates of tax under this Act and on sl}ch notification being issued,
the rate of tax shall be deemed to have been amended accordingly:

Provided that the rate of tax to be varied by the State Government
in respect of any class of luxury shall not exceed twenty percentum."

Substitution of _5._ In the principal Act, for section 3A, the following shall be substituted,
section 3A. namely:-

''Liability of 3A.(1) Subject to the provisions of the Act, there shall be levied and
proprietor of a collected a tax on the turnover of receipts in ~espect of luxuries provided
hospital to pay tax

in a hospital.

(2) The tax in sub-section (1) shall be levied at the following rates,
namely:-

"
(a)where the charge for luxury provided Nil.
in a hospital is less than one thousand
rupees per day per room.

(b) where the charge for luxury provided Five percent of turnover of

41 a hospital is rupees one thousand receipts.

_(_ or more but does not ' exceed two

thousand five hundred rupees per day
per room.

( c) where the charge for luxury provided Eight percent of turnover of
in a hospital exceeds two thousand receipts.
five hundred rupees per day per
room.

(3) The tax levied under sub-section (1) shall be paid by every proprietor.

( 4) The provisions of this Act and the rules made thereunder, in so far as
they apply to the hotelier with regards to registration, accounts, return,


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1392 THE ASSAM GAZETTE, EXTRAORDINARY, AUGUST 29, 2009

payment of tax, assessment, appeal, revlSlon, references, refunds,
payment of interest, offence and penalties, prosecution, compounding
of offences and other procedural matters, shall apply mutatis mutandis
to the proprietor of a hospital."

Insertion of a 6. In the principal Act, after section 3A, a new section 3B shall be inserted,
new section 3B.

namely:-

"3B. Notwithstanding anything contained in this Act, the State

"Composition of
tax liability. Government may, by notification published in the Official Gazette and

subject to such conditions and restrictions as it may specify therein, permit
any hotelier or a proprietor to pay at his option in lieu of amount of tax
payable under the provisions of the Act by such hotelier or a proprietor, an

               - amount by way of composition as may be fixed by the State Government
in such notification."

Substitution of 7. In the principal Act, for section 5, the following shall be substituted,
section S namely:-

"Taxing "5.(1) Subject to the provisions of the Act and the rules made thereunder, Assam
authorities and the authorities competent to register, receive returns, assess or re-assess, Act
exercise of recover and enforce payment of tax and impose penalty under the Assam VIII of

2003.

powers. Value Added Tax Act, 2003, hereinafter referred to as the VAT law, shall,

within their local jurisdiction under the VAT law, be competent to register,
receive returns, assess or re-assess, recover and enforce payment of tax
including imposition of penalty due from any hotelier or proprietor whose
place of business is located within such jurisdiction as if the tax were a tax
under the VAT law and the hotelier or the proprietor was a dealer, within
the meaning of the VAT law carrying on business within such jurisdiction
and for this purpose they may exercise all or any of the powers conferred
upon them by or under that Act.

(2) Subject to the provisions of this Act and rules made thereunder, the
provisions relating to security, interest, assessments and re-assessments,
recovery of tax, interest, penalty or any other sum including special mode
of recovery, first charge, period of limitation, refund, retention of accounts,
requirement to provide information, transfer of liability· of any firm or
Hindu undivided family to pay tax in the event of dissolution of such firm ·
or partition of such family, inspection, search and seizure, appeals,
revisions, references, refunds, compounding of offences and treatment of
documents furnished by dealer as confidential, of the Assam Value Added Assam

ActVill

Tax Act, 2003 and the rules made thereunder, orders, notifications issued of2003.
thereunder shall mutatis mutandis apply to an hotelier or a proprietor in
respect of tax levied and payable under this Act, as if those provisions were

# • mutatis mutandis incorporated in this Act and the rules framed and orders

and notification issued under those provisions were mutatis mutandis
issued under the relevant provisions so incorporated under this Act."

Amendment of 8. In the principal Act, in section 15, in sub-section (1), for the clauses (A)
section 15. and (B), the following shall be substituted, namely:-


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"(A) where there has been contravention referred to in sub-clause (i) or (ii)
of clause (a), a penalty of an amount not exceeding double the sum
collected by. way of tax, subject to a minimum of ten thousand
rupees;

(B) where there has been a contravention referred to in sub-clause (ii) of

                         - clause (a) or 'in clause (b), penalty of amount not exceeding fifty
thousand rupees subject to a minimum of ten thousand rupees, and in
additiOn any sum crillected by the person by way of tax in
contravention of · section 11, shall be forfeited to the State
Government."

Substitution of 9. In the principal Act, for section 19, the following shall be substituted,
section 19. namely:-           -

Power to make "19. (1) The . State Government may, subject to the condition of previous
rules. publication, by notification, make rules for carrying out the purposes

of this Act:

Provided that if the State Governme.nt is satisfied that
circumstances exist which render it necessary for it to take immediate
action, if any, it may make any rules without such previous
publication:

Provided further that any rule under this Act may be made so as to
have the retrospective effect.

(2) In particular and without prejudice to the generality of the foregoing
provision, .the State Government may make rules for all or any of the
following matters, namely:-                      -

(a) all matters expressly required or allowed by this Act to be
prescribed;

(b) the manner of payment of tax;

(c) the form in which accounts and registers shall be maintained by a
hotelier;                            -

( d) any other matter which is required or allowed by this Act to be
prescribed.                          -


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1394 THE ASSAM GAZETTE, EXTRAORDINARY, AUGUST 29, 2009

(3) The State Goverrupent shall· cause· every rule made under this Act and

every notification issued under this Act to be laid, as soon as may be,
after it is published before the State Legislature while it is .in session
for a total period of thirty days which may be· comprised in one session
or in two or more .successive sessions in which it is so laid or the
sessions· immediately following, and if the State Legislature agrees in

                                                                             - ·· making any modification in the rule or notification or that the rule or
notiffcation shoUld not be made, the rule or notification shall thereafter
have effect only .in such modified form or be of no effect, as the case
may be; so, however, that any such modification or annulment shall be
without prejudice to the validity of anything previously done under
that rule ot notification."

. MOHD. A. HAQUE,

i Secretary to the Government of Assam,                                                                                -

Legislative Department, Dispur.

GUWAHATI - Printed and published by the Dy. Director (P&S) Directorate of Ptg. and Sty., Assam Guwahati-21


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