Luxury tax

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Archana Das (Querist)

06 September 2012 hi...
My sir has given me a task to vouch luxury tax can anyone plz tell me how do i do it?? it's of rooms in a hotel in delhi. Plz answer asap..
thanks..in adv

Ahamed

Ahamed (Expert)

06 September 2012 Luxury Tax is tax on Hotel Rooms Rent and it is levied by the State Government,

First of all you decide the scope of Audit,
Whether it is internal audit or a Statutory audit.

If it is Internal Audit, you have to check the bills with the books and whether the % of Tax is right and is there any cases where the Luxury Tax has been not charged.

In case of statutory audiit:-

There will be a list of Luxury Tax Collected and will be given in a Separate Annexure while submitting the return...therefore you can collect that annexure so that you will get an overall luxury tax payable for the month, and you can verify in the bank statement whether it has been paid.

and the list can be verified with the book entries whether they had been accounted properly.

There may be a situation, that they may extract the details from the book itself and in that case you may not able to find any difference.