The department is now planning to track down hotels that may be evading tax by not registering with the state. Sources said that the state plans to seek data on hotels that may be out of the tax net from the municipal corporation and Delhi Police to launch a crackdown. As of now, there are 1,143 hotels of all categories registered with department of excise covered under the luxury tax bracket.
The excise department is also planning to study the room occupancy status to understand causes of low booking. While the economic recession is cited as one common reason for fewer tourists and business travelers, it is also felt that with more hotels coming up in the National Capital Region the business traveler has a greater choice and prefers to stay closer to his place of conference or work.
Delhi government collected revenue of Rs 306.75 crore as luxury tax during 2013-2014, a growth of 4.5% over collections in 2012-2013. Though this was an increase, senior officials feel that the impact of the slump in the market remains as occupancy in hotels remains low. A robust collection reflecting booming industry is reflected in increase of the range of 12-15% over collections of the previous year, say officials.
To ensure that tax collections keep with timelines and without any delay, registered entities have been using the Excise Supply Chain Information Management System (ESCIMS) for online payment of tax and filing of online returns of luxury tax.
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