New Delhi, Aug 8: Going for a massage at a spa, exercising at a gym and booking a banquet hall for marriage would now cost more in the city with Delhi government Wednesday effecting a 3 percent luxury tax on them.
The provision to levy luxury tax on banquet halls, gymnasium and spas was made in the Delhi Tax on Luxuries (Amendment) Bill, 2012 which was passed by Delhi assembly in June.
The government today issued a notification giving effect to the hike.
Officials said banquet halls, gymnasium and spas having an annual turnover of Rs five lakh will have to pay 3 percent luxury tax on their services.
The luxury tax will be also levied on hotel accommodation with tariff of Rs 750 or more per day per room.
The government estimates to collect an additional revenue of Rs 15 crore annually from the new services being brought under the luxury tax.
The luxury tax on banquet halls, gymnasium, spas and hotel accommodation would be in excess of the VAT on them.
The provision to levy luxury tax on banquet halls, gymnasium and spas was made in the Delhi Tax on Luxuries (Amendment) Bill, 2012 which was passed by Delhi assembly in June.
The government today issued a notification giving effect to the hike.
Officials said banquet halls, gymnasium and spas having an annual turnover of Rs five lakh will have to pay 3 percent luxury tax on their services.
The luxury tax will be also levied on hotel accommodation with tariff of Rs 750 or more per day per room.
The government estimates to collect an additional revenue of Rs 15 crore annually from the new services being brought under the luxury tax.
The luxury tax on banquet halls, gymnasium, spas and hotel accommodation would be in excess of the VAT on them.
