The Expenditure Tax Act governs all the taxation related to the chargeable expenditure incurred by an individual in restaurants and hotels. This is applicable in restaurants and in hotels where the room rent is Rs.3,000 or higher.
The Expenditure Tax Act of 1987 is an act that governs all taxation-related processes associated with the chargeable expenditure that an individual incurs in certain hotels or restaurants.
This act will charge to tax "chargeable expenditure" provided these two criteria are fulfilled:
It should be noted that in the case of room rent charges in hotels, the Assessing Officer of the Income Tax Department has the power and freedom to deem whether the breakup of charges has been mentioned in the correct manner.
Other respective charges such as those for food, drinks, and other services cannot be used to cover up the actual charge of the room rental, etc. If there are discrepancies in this regard, the Assessing Officer will decide on what amounts need to be charged under the various headings in the itemized breakup of the bill.
Under the Expenditure Tax Act, 1961:
"Chargeable expenditure" refers to and includes any payment made to (or expenditure incurred in) the hotel which is connected to the provision of:
"Chargeable expenditure" does not include:
Under the Expenditure Tax Act, 1961, tax is charged as:
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
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