25 November 2011
some states calculate luxury tax based on the amount paid by the customer, there are others who calculate it on the basis of the rack rates
in delhi The luxury tax is levied on the turnover of receipts of a hotelier at the notified rate not exceeding 15%. The Govt. may notify different rate(s) from time to time and for the different classes of hotels. At present the rate of Luxury Tax is 12.5% and this is being levied w.e.f 2004 on declared tariff.
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