Hotel receipts tax imposes a special levy on hotel gross receipts with rules for computation, returns, assessments and penalties. A special hotel receipts tax applies to hotels in India meeting the room charge threshold and is levied at a specified rate on chargeable receipts, defined to include receipts from accommodation, food, drink and ancillary services; limited deductions (bad debts on conditions, certain indirect taxes and the hotel receipts tax) are allowed. Rules govern attribution of room charges in composite bills and permit tax officers to determine room charges reasonably where composite charges are indeterminate or contrived. The Act provides for self assessment, advance payments, assessments (including best judgment assessments), appeals, recovery procedures and a graduated penalty and prosecution regime for defaults and wilful evasion.