Is there luxury tax on my hotel stay in Rourkela?

Detailed Legal Analysis

Yes, there is a luxury tax applicable on hotel stays in Rourkela, as it falls under the purview of the Odisha Luxury Tax Act, 1990.

The Odisha Luxury Tax Act, 1990 governs the imposition of luxury tax on various services, including accommodation in hotels and lodges. Here are the key points regarding luxury tax on hotel stays:

• Definition of Luxury Tax: Luxury tax is levied on services provided by hotels and similar establishments that offer premium facilities.
• Rate of Tax: The tax rate varies based on the room tariff. In Odisha, the luxury tax on hotel accommodation is generally charged as follows:
  • For rooms priced above ₹1,000 but below ₹2,500 per day: 5% of the room tariff.
  • For rooms priced above ₹2,500 but below ₹5,000 per day: 10% of the room tariff.
  • For rooms priced ₹5,000 and above per day: 15% of the room tariff.
• Exemptions: Certain categories of accommodations may be exempt from this tax, such as:
  • Accommodations provided by the government for official purposes.
  • Hotels with a total accommodation capacity of less than 10 rooms.
• Registration: Hotels must register under the Odisha Luxury Tax Act to collect and remit the luxury tax. Non-compliance can result in penalties.
• Filing Returns: Hotels are required to file periodic returns detailing the luxury tax collected and remit the tax to the state government.

In addition to the luxury tax, guests should also be aware that other applicable taxes, such as Goods and Services Tax (GST), may be levied on hotel bills. The GST on hotel accommodation is typically 18% for hotels with a tariff of ₹1,000 and above.

For further information, one can refer to the Odisha Luxury Tax Act, 1990, specifically Sections 3 and 4, which outline the imposition and collection of luxury tax in the state.