650 : Circular No. 650, dated 31-05-1993

EXPENDITURE TAX ACT, 1987

Clarification on applicability of the Expenditure Tax Act, 1987

 

The Board, vide Circular No. 645, dated March 15, 1993 has clarified that luxury tax and such other taxes levied by the State Governments will form part of the "room charges" for the determination of applicability of the Expenditure-tax Act to any particular hotel.

Some doubts have been expressed about the meaning of "such other taxes" which are to be taken into account for computing the "Room charges".

The phrase "such other taxes" would require to be construed ejusdem generis. Therefore, the phrase "such other taxes" would only mean any tax (by whatever name called) which is in the nature of luxury tax.

Circular : No. 650, dated 31-5-1993.