Luxury tax in kerala

Vinodkumar Nair (Manager) (24 Points)

19 March 2013  

Hi,

I had a few queries on Luxury tax in kerala. I am organising a party in a 4*/5* hotel in kerala in May'13 and the hotel guys have said that i need to pay some luxury tax. Have a few queries with regards to this. Just thought if anyone could help me with this.

  1. I believe as a normal customer we are liable to pay this tax, is this correct?
  1. Is there any revision proposed in the financial budget 13-14 for luxury tax.? Is there an increase proposed? What is the current rate in kerala?
  1. In case there is an increase in Luxury Tax and if i pay the full bill in advance before 31/03/13, Will i have to pay the difference amount when the actual event happens (i.e May'13)?
  1. I found a comment suggesting that we only need to pay tax on 70% of a Banquet/Party bill, is this true or does it depend on the state rules?

Would really appreciate if someone could help me with this as soon as possible.

Thanks,

Vinod Nair