Luxury tAX

Dear Sir/Madam,

I want to know whether we can get the set off on Luxury Tax paid with Luxury Tax received .

I'm in Hotel business, if my guest room are fully occupied and any guest checked in then we have given the accomodation in some other hotel. During the check out he charged the bill on our hotel and we had paid the bill with luxury tax to other hotel and corresponding we have charged the bill from the customer with luxury tax. this indicates the duplication of Luxury Tax. So i want ot clkarify whether we can get the sett of on the same. Kindly reply asap.

Regards,

Megha Topiwala

Replies (2)

Hi,

 

As far as I know, there is no set-off mechanism to avoid cascading effect in luxury tax as is available in Excise, VAT....

 

You may review whether the above service would fall within the definition of `Luxury provided` or not since it is not provided directly to the guests.

 

Regards

Dharmaraju

thnx....

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