In force · As amended up to 2026-08
3. Application of the Act.
[1]
[3. Application of the Act.--This Act shall apply in relation to any chargeable expenditure--
(1) [2]
[incurred before the 1st day of June, 2003 in a hotel] wherein the room charges for any unit
of residential accommodation at the time of incurring of such expenditure are [3]
[three thousand rupees
or more per day] and where,--
(a) a composite charge is payable in respect of such unit and food, the room charges included
therein shall be determined in the prescribed manner;
(b) (i) a composite charge is payable in respect of such unit, food, drinks and other services,
or any of them, and the case is not covered by the provisions of sub-clause (a), or
(ii) it appears to the Assessing Officer that the charges for such unit, food, drinks or other
services are so arranged that the room charges are understated and the other charges are
overstated,
the Assessing Officer shall, for the purposes of this clause determine the room charges on such reasonable
basis as he may deem fit; and
(2) incurred in a restaurant [4]
[before the 1st day of June, 1992.]
[Footnotes]
1. Subs. by Act 49 of 1991, s. 115, for sections 3 to 5 (w.e.f. 1-10-1991).
2. Subs. by Act 32 of 2003, s. 102, for "incurred in a hotel" (w.e.f. 1-6-2003).
3. Subs. by Act 20 of 2002, s. 115, for "two thousand rupees or more per day per individual" (w.e.f. 1-6-2002).
4. Ins. by Act 18 of 1992, s. 105 (w.e.f 1-6-1992).
Source: India Code