Lok Sabha Question No. 2141 (UNSTARRED), answered on 2016-07-29
Subject: Taxes on Five Star Hotels
Ministry: FINANCE
Asked by: BHANU PRATAP SINGH VERMA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA

## UNSTARRED QUESTION NO.2141

TO BE ANSWERED ON FRIDAY, THE 29 th  July 2016 7 SHRAVANA 1938 (SAKA)

## TAXES ON FIVE STAR HOTELS

## 2141.   SHRI BHANU PRATAP SINGH VERMA

Will the Minister of FINANCE be pleased to state:

- (a) the amount of wealth tax collected during each of the last three years, commissionerate-wise;
- (b) whether the Government proposes to levy taxes on five star hotels and if so, the details thereof;
- (c) the number of five star hotels on which tax is outstanding and if so, the details thereof; and
- (d) the action taken against these evading hotels?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

- (a) The amounts of wealth-tax collections during last three financial years in respect of various Regions under the Income Tax Department are as under:-

|                           | Gross Wealth Tax collection (in Rs Crore)   | Gross Wealth Tax collection (in Rs Crore)   | Gross Wealth Tax collection (in Rs Crore)   |
|---------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|
| Region                    | Financial Year 2013-14                      | Financial Year 2014-15                      | Financial Year 2015-16 (Provisional)        |
| Andhra Pradesh &Telangana | 42.78                                       | 40.53                                       | 38.90                                       |
| Karnataka                 | 73.90                                       | 81.53                                       | 76.68                                       |
| Bihar &Jharkhand          | 2.91                                        | 3.07                                        | 3.84                                        |
| Delhi                     | 158.23                                      | 166.13                                      | 167.51                                      |
| Gujarat                   | 56.34                                       | 65.20                                       | 63.70                                       |

| Kerala                            |   12.45 |   18.24 |   14.91 |
|-----------------------------------|---------|---------|---------|
| Madhya Pradesh &Chhattisgarh      |   16.45 |   17.37 |   15.16 |
| Mumbai                            |  327.11 |  355.31 |  370.15 |
| Nagpur                            |    7.8  |    7.65 |    7.96 |
| North East Region                 |    6.06 |    5.18 |    5.34 |
| North West Region                 |   37.42 |   35.52 |   34.48 |
| Odisha                            |    4.42 |    4.35 |    3.28 |
| Pune                              |   46.52 |   44.44 |   44.51 |
| Rajasthan                         |   19.06 |   22.13 |   25.2  |
| Tamil Nadu                        |   90.33 |  104.57 |   88.92 |
| Uttar Pradesh (East)              |    9.61 |    9.28 |    8.76 |
| Uttar Pradesh (West) &Uttarakhand |   21.26 |   22.53 |   24.25 |
| West Bengal &Sikkim               |   77.43 |   83.23 |   87.75 |
| TOTAL                             | 1010.08 | 1086.27 | 1081.3  |

(b) The income of a hotel, including a star rated hotel, is already chargeable to income-tax as per the  provisions  of  the  Income-tax  Act,  1961.  Service  tax  is  also  already  chargeable  on  various services provided by hotels including residential and lodging services, if the declared tariff of one unit of accommodation is Rs 1000/- or above.

(c) Data  of  outstanding  taxes  in  respect  of  hotels  of  different  star  ratings  is  not  separately maintained.

(d) In  cases  of  hotels,  like  any  other  business  category,  action  as  per  the  provisions  of  the relevant  taxation  law  for  recovery  of  outstanding  taxes  is  taken,  including  attachment  of  bank account and debtors, attachment and sale of immoveable property, recovery from Directors of the defaulting company, etc.

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