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Goa introduces Bill to amend luxury tax structure
July, 28th 2006

The amendment seeks to levy tax at the rate of 10 per cent on the turnover of receipts of the proprietor, for accommodation provided for commercial purposes.

The Goa Government has introduced an amendment Bill on Tuesday in the State Assembly to amend the definition of luxury under its Goa Tax on Luxuries Act, so as to exclude entertainment, such as boat cruise, river cruise, water sports and casinos from the definition of luxury provided in a hotel under the Act.

These are now being brought under the Goa Entertainment Tax Act.

By another amendment, it sought to include open space utilised for commercial purposes within the ambit of definition of accommodation provided for commercial purpose under the Act to cover exhibitions conducted by non-resident dealers.

The Chief Minister, Mr Pratapsingh Rane, who holds the finance portfolio, also introduced an amendment Bill for various provisions in the value-added tax. The amendment Bill for Luxury Tax also further seeks to rationalise the luxury tax rate structure and empower the Government to reduce or enhance any rate of tax. Simultaneously, the bills also seeks to amend Section 22 of the Act to provide that where the charge for luxury provided in a hotel is not exceeding Rs 200 per day, no tax is payable.

The proposed amendment of the Act seeks to levy tax at the rate of 10 per cent on the turnover of receipts of the proprietor, for accommodation provided for commercial purposes.

By another amendment, the Government also seeks to provide that the registration certificate granted under the Act shall be renewed every year in September/October, as tourist season in the State starts from November every year and that it will help the department to monitor registration and build data base of availability of rooms.

The proposed VAT Act amendment provides that if any dealer who is eligible for composition of tax, fails to file returns within the prescribed time, he shall be disqualified for the composition of tax for the next two consecutive years.

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