SectionsParticulars
1Short title, extent and commencement
(1) This Act may be called the Expenditure-tax Act, 1987. (2) It extends to the whole of India except the State of Jammu and Kashmir. (3) It shall come into f...
2Definitions
In this Act unless the context otherwise requires,- (1) "assessee" means a person responsible for collecting the expenditure-tax payable under the provisions ...
3Application of the Act
This Act shall apply in relation to any chargeable expenditure- (1) incurred in a hotel wherein the room charges for any unit of residential accommodation at...
4Charge of expenditure-tax
Subject to the provisions of this Act, there shall be charged on and from- (a) the commencement of this Act, a tax at the rate of 8[ten] per cent of the char...
5Meaning of chargeable expenditure
For the purposes of this Act, chargeable expenditure,- (1) in relation to a hotel referred to in clause (1) of section 3, means any expenditure incurred in, ...
6Tax authorities
13[(1) Every Director General of Income-tax, Chief Commissioner of Income-tax, Director of Income-tax, Commissioner of Income-tax, Commissioner of Income-tax ...
7Collection and recovery of expenditure-tax
(1) Where any chargeable expenditure is incurred in a hotel referred to in clause (1) of section 3,- (a) if such expenditure relates to any of the services, ...
8Person responsible for collecting tax to furnish prescribed return
(1) Every person responsible for collecting the tax shall before the expiry of four months from the 31st day of March in each year, furnish or cause to be fur...
9Assessment
(1) For the purpose of making an assessment under this Act, the 16[Assessing] Officer may serve on any person who has furnished a return under section 8 or up...
10Best judgment assessment
If- (a) any person fails to make the return required by any notice given under sub-section (2) of section 8 and has not made a return or a revised return unde...
11Chargeable expenditure escaping assessment
If- (a) the 16[Assessing] Officer has reason to believe that by reason of omission or failure on the part of the assessee to make a return under section 8 for...
12Rectification of mistake
(1) With a view to rectifying any mistake apparent from the record, the tax authority referred to in section 6 which passed any order under the provisions of ...
13Time limit for completion of assessment and reassessment
(1) No order of assessment shall be made under section 9 or section 10 at any time after the expiration of a period of four years from the end of the assessme...
14Interest on delayed payment of expenditure-tax
Every person responsible for collecting expenditure-tax and paying it to the credit of the Central Government in accordance with the provisions of section 7, ...
15Penalty for failure to collect or pay expenditure-tax
Any person responsible for collecting expenditure-tax in accordance with the provisions of sub-section (1) or sub-section (2) of section 7, who- (a) fails to...
16Penalty for failure to furnish prescribed return
If a person fails to furnish in due time the return which he is required to furnish under sub-section (1) of section, 8 or by notice given under sub-section (...
17Penalty for concealment of chargeable expenditure
If the 16[Assessing] Officer or the Commissioner (Appeals) in the course of any proceedings under this Act is satisfied that any person has concealed particul...
18Penalty for failure to comply with notice
If the 25[Assessing] Officer in the course of any proceedings under this Act is satisfied that any person has failed to comply with a notice under sub-section...
19Penalty not to be imposed in certain cases
Notwithstanding anything contained in the provisions of section 15, section 16, section 17 or section 18, no penalty shall be imposable on the assessee for an...
20Notice of demand
When any tax, interest, penalty or any other sum is payable under this Act, the 16[Assessing] Officer shall serve upon the assessee a notice of demand in the ...
21Revision of orders by the Commissioner
(1) The Commissioner may, either of his own motion or on application by the assessee for revision, call for the record of a proceeding under this Act which ha...
22Appeals to the Commissioner(Appeals)
(1) Any person objecting to the amount of expenditure-tax for which he is assessed by the 16[Assessing] Officer, or denying his liability to be assessed under...
23Appeals to Appellate Tribunals30
(1) Any assessee aggrieved by an order passed by a Commissioner under section 21, or an order passed by a Commissioner (Appeals) under any provision of this ...
24Application of provisions of Income-tax Act
The provisions of the following sections and Schedules of the Income-tax Act and the Income-tax (Certificate Proceedings) Rules, 1962, as in force from time t...
25Willful attempt to evade tax, etc.
If a person willfully attempts in any manner whatsoever to evade collection or payment of any tax, penalty or interest chargeable or imposable under this Act,...
26Failure to furnish prescribed returns
If a person fails to furnish in due time the return which he is required to furnish under sub-section (1) of section 8 or by a notice given under sub-section ...
27False statement in verification, etc.
If a person makes a statement in any verification under this Act or any rule made thereunder, or delivers an account or statement which is false, and which he...
28Abetment of false return, etc.
If a person abets or induces in any manner another person to make and deliver an account or a statement or declaration relating to any chargeable expenditure ...
29Certain offences to be non-cognizable
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), an offence punishable under section 25 or section 26 or section 27 or ...
30Institution of proceedings and composition of offences
(1) A person shall not be proceeded against for any offence under section 25 or section 26 or section 27 or section 28, except with the previous sanction of t...
31Power to make rules
(1) The Board may, subject to the control of the Central Government, by notification in the Official Gazette, make rules, for carrying out the provisions of t...
Expenditure-Tax Rules, 19871
1Short title and commencement
(1) These rules may be called the Expenditure-tax Rules, 1987. (2) They shall come into force on the 1st day of November, 1987. ...
2Definitions
In these rules, unless the context otherwise requires:- (a) "Act" means the Expenditure-tax Act, 1987 (35 of 1987); (b) "Form" means a form set out in the Ap...
3Determination of room charges in the case of composite charge
For the purposes of sub-section (2)2 of section 3 of the Act, in a case where a composite charge is payable in respect of residential accommodation and food, ...
4Expenditure incurred in Indian currency deemed to have been incurred in foreign exchange
For the purposes of clause (a) of the Explanation to section 5, any expenditure incurred or any payment made in Indian currency, obtained by conversion of for...
5Return of aggregate of the payments received in respect of chargeable expenditure under section 8
The return of the aggregate of the payments received in respect of chargeable expenditure required to be furnished under sub-section (1) or sub-section (2) o...
6Notice of demand
The notice of demand under section 20 of the Act shall be in Form No. 4.] ...
7Form of appeal to the Commissioner (Appeals)
(1) An appeal under section 22 of the Act to the Commissioner (Appeals) shall be made in Form No. 5 and shall be verified in the manner indicated therein. (2...
8Form of appeal and memorandum of cross-objections to Appellate Tribunal
(1) An appeal under sub-section (1) or sub-section (2) of section 23 of the Act to the Appellate Tribunal shall be made in Form No. 6 and shall be verified i...
AppendixForm No. 1
(See rule 4) Certificate of payment of hotel charges by travel agent/ airline in Indian currency obtained by conversion of foreign exchange into Indian curren...
Form No. 2
[See rule 4] Certificate of payment of hotel charges by the nationals of Czechoslovakia, German Democratic Republic, Poland, Romania and the USSR Name of the ...
Form No. 3
See section 8 of the Expenditure-tax Act, 1987, and rule 5 of the Expenditure-tax Rules, 1987 Return of aggregate of the payments received in respect of ...
Form No. 4
[See rule 6] Notice of demand under section 20 of the Expenditure-tax Act, 1987 Status…………………… PA No. ……………….. To …………………………….. ……………………………… ………………………………. Thi...
Form No. 5
[See rule 7] Appeal to the Commissioner of Income-tax (Appeals) under section 22 of the Expenditure-tax Act, 1987 Designation of the Commissioner (Appeals) *...
Form No. 6
[See rule 8] Form of appeal to the Appellate Tribunal IN THE INCOME-TAX APPELLATE TRIBUNAL ...............................……………………… * Appeal No. ........…………...
Form No. 7
[See rule 8(2)] Form of memorandum of cross-objections to the Appellate Tribunal IN THE INCOME-TAX APPELLATE TRIBUNAL ………………….............................…………...
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