Home Circulars 1994 Income Tax Income Tax - 1994 Circular - 1994 This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
Clarification on applicability of the Expenditure-tax Act, 1987 - Income Tax - 679/1994Extract Clarification on applicability of the Expenditure-tax Act, 1987 Circular No. 679 Dated 11/2/1994 The Board, vide Circular No. 645, dated 15-3-1993 (see [1993] 200 ITR (St.) 228) read with Circular No. 650, dated 31-5-1993 (see [1993] 202 ITR (St.) 18) had clarified that luxury tax and such other taxes levied by the State Government will form part of the "room charges" for the determination of applicability of the Expenditure-tax Act to any particular hotel. 2. The Income-tax Appellate Tribunal has recently given a finding contrary to the above view of the Board. After examination of the whole issue afresh, it has been decided to accept the view of the Income-tax Appellate Tribunal holding against inclusion of the luxury tax as a part of the "room charges" under section 2(10) of the Expenditure-tax Act. The circulars of the Board referred above are accordingly being withdrawn with immediate effect. (Sd.) M. N. Dikshit, Director (OT), Central Board of Direct Taxes.
|