Consequential amendments

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....iew of the Board. After examination of the whole issue afresh, it has been decided to accept the view of the Income-tax Appellate Tribunal holding against inclusion of the luxury tax as a part of the "room charges" under section 2(10) of the Expenditure-tax Act. The circulars of the Board referred above are accordingly being withdrawn with immediate effect. Annexure Circular No. 645, dated 15-3-1993 1. Provisions of the Expenditure-tax Act apply in relation to any chargeable expenditure incurred in a hotel wherein the room charges for any unit of residential accommodation at the time of incurring of such expenditure are Rs. 1,200 or more per day per individual. (Up to 1-6-1992, the Act was applicable to chargeable expenditure incur....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y particular hotel. Some doubts have been expressed about the meaning of "such other taxes" which are to be taken into account for computing the "room charges". The phrase "such other taxes" would require to be construed ejusdem generis. Therefore, the phrase "such other taxes" would only mean any tax (by whatever name called) which is in the nature of luxury tax. Circular No. 658, Dated 2-9-1993 1. Under section 3 of the United Nations (Privileges and Immuni­ties) Act, 1947, read with section 18 of the Schedule to the said Act, officials of International Organisations like the World Bank Mission Staff staying in hotels on official duty, are accorded the same privileges in respect of exchange facility as are accorded to the ....