Expenditure Tax-Interpretation.

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....rgeable expenditure within the purview of the Expenditure Tax Act. Some of the questions that have arisen are li sted below along with clarifications to enable proper and correct interpretation of the law: Question Clarification 1.Whether Luxury tax and such other taxes are includible incomputingthe "roomrent"? Luxury tax and such other taxes levied by State Governments are to be included in....

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....be taken into account while considering the room rent u/s.2 of the Expenditure Tax Act for the purposes of deciding the applicability of Expenditure Tax Act and the hotel will be assessed under the Act if the room charges, irrespective of the discount, exceed Rs.400/-. 3. Are general charges added to room tarrif such as electricity, water, telephone, room service char-ges includible? Charges on ....

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....eable to Expenditure Tax u/s.5 of the Act. 4. Whether rental cha-rges/hire charges constitute chargea- ble expenditure under the Expendi-ture Tax Act, 1987. Payments towards rent, lease or hire charges by the occupants of accomodation including shops, show-rooms located in the assessee-hotels are chargeable to expenditure-tax u/s.5 of the Act. However, as is clear from the provisions of sec.5 th....