Luxury Tax Act

The Maharashtra Tax on Luxuries was instituted in 1987, according to Western India Regional Council of the Institute of Chartered Accounts of India (WIRC). Maharashtra is one of the wealthiest states in India, according to Your India Portal.

  1. Hotels

    • The Luxury Tax is imposed upon hotels in Maharashtra, India, for providing residential accommodation. The tax is levied at different rates, according to WIRC. The tax rate is based upon how much a hotel charges its clients for rooms. Hotels that charge customers less than 200 Rupees per day for a room are not liable for a luxury tax. Hotels that rent rooms for 200 to 1,200 Rupees are charged 4 percent. Those that rent rooms for more than 1,200 Rupees are charged at a 10 percent luxury tax rate.

    Tobacconists and Textiles Traders

    • The state government of Maharashtra levied Luxury Tax on tobacconists and textiles traders, as well. However, the Supreme Court of India struck down levying this tax on tobacco in the case of Godfrey Philips India, Ltd. v. State of U.P. and Others in 2005, according to WIRC. The Maharashtra Government removed the tax on tobacconists and textile traders in 2006.


    • The Luxury Tax of Maharashtra may be appealed through the office of the Assistant Commissioner, otherwise known as the Deputy Commissioner. The second appeal goes through the Commissioner of Luxury Tax, according to WIRC. An appeal should be filed within 60 days of communication of order. There are varying tax fee stamps for each appeal, pursuant to Rule 47 of the Luxuries Rules.

Related Searches


  • Photo Credit beach houses and hotels image by Photoeyes from

You May Also Like

  • How to Avoid a Luxury Vehicle Tax

    When purchasing a vehicle that is classified as a "luxury car," the tax criteria changes. Congress set the luxury vehicle price threshold...

  • The Karnataka Luxury Tax Act

    Karnataka is a state located in south west India, previously known as Mysore. To increase income used to fund government projects, the...

  • How to Calculate Luxury Car Tax

    A luxury car tax is an amount that is owed to the government for when you purchase a vehicle over a certain...

  • Monuments in Maharashtra

    Monuments in Maharashtra. The state of Maharashtra in western India is home to many historic monuments, including four designated as World Heritage...

  • The Karnataka Sales Tax Act

    Karnataka is a region in southwest India whose regional seat of government in Bangalore. The Karnataka regional government passed the Karnataka Sales...

  • What Is an Alabama Luxury Tax Token?

    Luxury tax tokens are interesting collectible coins. They are not extremely rare, but do represent a unique period of history when sales...

  • What Licenses are Required to Start a Restaurant in Maharashtra, India?

    Obtaining the licenses required to start a restaurant in Maharashtra, a state in the western part of India, involves submitting paperwork to...

  • Customer Taxes on Hotel Rooms

    Most people decide to stay in a hotel or some form of paid accommodations while traveling. When lodging, customers will pay a...

  • Difference Between VAT & Sales Tax in India

    The purpose of a taxation system is to enable the state treasury of a country to provide basic services and certain amenities...

  • What Is a Sumptuary Tax?

    Sumptuary shares the same root as the word "sumptuous," which means rich and luxurious. Thus, a sumptuary tax is a levy on...

  • Sales Tax Rules in India

    Sales Tax Rules in India. There are two types of sales tax in India: the central sales tax, or CST, which is...

  • IRS Luxury Auto Rules

    You might own a "luxury auto" whether you know it or not--for tax purposes, anyway. Luxury Car sportscar from my luxury car...

  • South Carolina State Sales Tax Laws

    South Carolina limits sales taxes on cars to $300. Luxury Car sportscar from my luxury car series image by alma_sacra from

Related Ads

Check It Out

Make-at-Home Vs. Takeout: Pumpkin Pie