Delhi Government’s Excise Department has launched a massive drive to identify banquet halls, spas, gymnasiums and hotels, which have not been paying entertainment tax in the national Capital.
In a recent drive, the department identified 80 hotels, 396 spas, 617 gymnasiums and 66 banquet halls, which could become the potential entertainment taxpayers, all across the city. Of these, the department has already got registered 33 hotels, 80 spas, 17 gymnasiums and 50 banquet halls.
Statistics show that besides the registration of the new business houses, there are 1,034 hotels, 242 spas, 117 gymnasiums and 266 banquet halls already registered with the city administration.
“In all, only 1,659 hotels, spas, gymnasiums and banquet halls had been regularly paying their entertainment tax,” a senior excise official said, adding the department was verifying the claims and counter claims of the remaining business houses to ensure only genuine one’s were brought under the tax regime.
As per the rules, banquet hall, spa or gymnasium with annual turnover of over Rs5 lakh is bound to pay three per cent entertainment tax to the city administration. As far as hotels are concerned, those that are charging between Rs750 to Rs1,000 per room a day have to pay three per cent entertainment tax. Other hotels which have been charging above Rs1,000 for each room a day have to shell out 10 per cent entertainment tax.
Source said that banquet hall owners were reportedly the biggest tax defaulters. The primary aim of the department is to ensure that those eligible for paying entertainment tax should not go scot-free. “When we were in the process of identifying the banquet halls, many claimed that they were doing annual business of less than Rs5 lakh. But when we confronted them, many agreed to get themselves registered so that they could pay their entertainment tax on a regular basis,” said a senior excise official.
The survey conducted by the department revealed majority of small gymnasiums being operated in different residential colonies, said sources.