Excise department to clamp down on hotels evading luxury tax

NEW DELHI: Concerned over low luxury tax collection, the excise department has geared up to clamp down on hotels, banquet halls, Spa evading luxury tax in the national capital.

The department, which is also in-charge of luxury tax collections in Delhi, will take the help of law enforcement agencies to boost luxury tax collections.

"We have asked police and tourism department, to give the list of hotels, banquet halls, Spa and others registered with them so that we can keep close vigil on their business.

"Besides, we have also requested department of trade and taxes to give the business details of such entities to study if they come under luxury tax ambit," said a senior official of the department.

There are presently around 1,143 hotels of all categories registered with department of excise covered under the luxury tax bracket.

Department officials said that entities registered with them are using the the Excise Supply Chain Information Management System (ESCIMS) for online payment of tax and other services, including online returns.