Luxury tax PowerPoint Presentation
& . entertainment . tax. Luxury tax in different states. States . Luxuries. Karnataka. Assam. Delhi. Haryana. Hotels. Charge for luxury . 1) between . Rs. . 500 – . Rs. . 1,000: 4%. 2) . Rs. . 1,000 – . ID: 548481Embed code:
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Luxury tax in different states
States LuxuriesKarnatakaAssamDelhiHaryanaHotelsCharge for luxury 1) between Rs. 500 – Rs. 1,000: 4%2) Rs. 1,000 – Rs. 2,000: 8%3) More than Rs. 2,000: 12%Room charge:1)Between Rs. 1000 – Rs. 1999 per day: 5%2)Between Rs. 1999 – Rs. 2999 per day per room: 8%3) Exceeds Rs. 2999: 12%Luxury boat or heritage home - Exceeds Rs. 200 per day: 5%Room tariff:1) Between Rs.750 - Rs.1000: 3% 2) Above Rs. 1000: 10% on per room per night basis(Rate not exceeding 15%)10%-15%Marriage hallsDaily rent exceeding Rs. 5,000: 10%Exceeds Rs. 5000 per day: 8%3%10%-15% for luxuries worth Rs. 20000 or moreClubsClub in a corporation area: Rs. 600 per member per annumClub in other areas: Rs. 300 per member per annum10% on Health clubs3%10%-15% for luxuries worth Rs. 2000 or moreHospitalsRoom rents exceeding Rs. 1000 per day: 8%Room rent:1)Between Rs. 1000 – Rs. 2500: 5%2) Exceeds Rs. 25000: 8%Slide3
Possible luxury taxation policy
The concept of luxury tax is relatively new and needs to be looked at in a focused manner.
Policy intervention may be looked at by the State of Haryana
Levy a staggered tax on various classes of hotel rooms
Services / amenities which are peripheral in nature may be taxed separately.
The tax rate may be kept in the range of 5
instead of 10%-15%
Staggered tax rates, for example, Banquet hall rent:
. 5,000 –
. 20,000: 3%,
. 20,000 –
. 50,000: 5%
. 50,000 –
. 75,000: 8%
. 75,000 or more: 10%
Tax on consumption of consumables e.g. fuel, electricity etc. beyond a certain limit
Intimation to the government of the event schedule
Apart from the primary services provided (per the luxury tax Act), other peripheral services may be taxed at 3%
Levy tax on room rents exceeding
. 15,000 of 5%Slide4
is ranked 5
in medical tourism industry globally.
will reach by
. 36,000 crore by 2018.
and Tamil Nadu promotes medical
Karnataka and Tamil Nadu are accredited in Incredible India for their medical tourism efforts.
Medical / wellness tourism industry of potential in the state of Haryana given the Medical Hub Gurgaon is becoming for the NCR region.
Out of the 20 internationally accredited hospitals, 2 are in Gurgaon
Tourism statistics in the Haryana reports doesn’t include Medical tourism as a concept
Medical and wellness tourism as a concept needs to be developed and brought about in the state via policy interventionSlide5
Entertainment industry in IndiaSlide6
Entertainment tax rates in India
Entertainment tax on gross movie ticket value
Assam, Himachal Pradesh,
Jammu & Kashmir, Punjab and Uttaranchal
Nil for Jharkhand films)
45% (Nil for Marathi films)
for Tamil films)
30% (2% for Bengali films)Slide7Slide8Slide9
Possible entertainment taxation policy
of a blanket 30% tax on the value of tickets, tax may be levied at different rates based on the class of entertainment ticket bought
Government should consider putting Nil tax on Haryanvi
There are currently around 1000 cable operators and around 300 Multi Service Operators (MSOs) that provide cable TV services in Haryana to seven million homes.
Taxation may be levied under via one of the following two ways:
A blanket yearly tax per year per operator of
per subscriber per month for household users (to be paid by the cable operator) and
. 50 per subscriber per month for commercial DTH users (to be paid by the cable operator)
Video on demand
Owing to the development of IT and allied services, ‘second screen’ concept is set to grow.
A need to develop a dedicated policy for the upcoming entertainment channels.