Section 9 of The Hotel-Receipts Tax Act, 1980
- (1)Where any hotel-receipts tax is payable on the basis of any return required to be furnished under section 8 or section 13 after taking into account the amount of hotel-receipts tax, if any, already paid under any provision of this Act, the assessee shall be liable to pay such tax before furnishing the return and the return shall be accompanied by proof of payment of such tax.
- (2)After an assessment under section 10 or section 11 has been made, any amount paid under sub-section (1) shall be deemed to have been paid towards such assessment.
- (3)If any assessee fails to pay the hotel-receipts tax or any part thereof in accordance with the provisions of sub-section (1), the Income-tax Officer may direct that a sum equal to two per cent. of such tax or part thereof, as the case may be, shall be recovered from him by way of penalty for every month during which the default continues: Provided that before levying any such penalty, the assessee shall be given a reasonable opportunity of being heard.
Summary
- Before officially filing a tax return, a person must calculate the hotel-receipts tax they owe and pay it upfront.
- When they file the return, they must include proof that this tax has been paid.
- Any money paid this way is credited toward their final official assessment amount.
- If a person fails to pay this tax before filing, the Income-tax Officer can charge a penalty.
- The penalty is calculated at two percent of the unpaid tax for every single month the default continues.
- Before charging this penalty, the officer must give the person a reasonable opportunity to be heard.
Practical examples
FAQ
1. Can I just file my return now and wait for the government to send me a bill to pay?
No. You are liable to pay the calculated tax before furnishing the return, and you must include proof of payment with the return.
2. What happens to the money I pay during self-assessment?
Once your official assessment is completed later, the amount you already paid is deemed to have been paid towards that final assessment.
3. Can the officer just instantly deduct a penalty from my bank account if I pay late?
No. Before levying any penalty for failing to pay, the assessee must be given a reasonable opportunity of being heard.
Test yourself
Q1.Under Section 9 of The Hotel-Receipts Tax Act, 1980, what document must accompany a tax return when it is furnished?
Q2.Under Section 9 of The Hotel-Receipts Tax Act, 1980, how is the penalty calculated if an assessee fails to pay the self-assessed tax?
Q3.Under Section 9 of The Hotel-Receipts Tax Act, 1980, what procedural step must the Income-tax Officer take before levying a penalty for failure to pay the self-assessed tax?
Q4.Under Section 9 of The Hotel-Receipts Tax Act, 1980, how does a self-assessment payment relate to the standard return required under Section 8?