I have an another case study for your suggestions. The luxury tax is implied on the Hotel Accomodation bills for 12.5%. In this a Hotel has a Tariff of lets say 7500.
This gives a standard discount for a customer which takes the charge to Rs. 4000/-. Is that the luxury tax to be calculated on Rs. 7500/- or Rs. 4000/-. Kindly suggest.
Was there any specific rule for the Hotel to apply tax on the standard rate than the paid rate. Kindly suggest