LI Network
Published on: February 20, 2024 at 14:43 IST
The Kerala High Court has declared that charges for yoga and meditation are subject to taxation under the Kerala Tax on Luxuries Act.
The bench, consisting of Justice A. K. Jayasankaran Nambiar and Justice Kauser Edappagath, upheld the tribunal’s decision, which distinguished between various incomes, permitting deductions for certain expenses related to ayurvedic treatments while including yoga and meditation charges in the taxable turnover.
The petitioner, assessed under the Kerala Tax on Luxuries Act for the 2014-2015 assessment year, disputed the inclusion of yoga and meditation charges, ayurveda treatment charges, and miscellaneous income in the taxable turnover. The petitioner argued that the charges were wrongly categorized as hotel income rather than hospital income.
Despite the petitioner’s claims, the assessing authority rejected them, leading to an appeal. The First Appellate Authority excluded the cost of medicines and professional charges from the turnover but maintained the inclusion of yoga and meditation charges and miscellaneous income in the taxable turnover.
The Tribunal, in the subsequent appeal, found that the petitioner had identified the excluded turnover under Section 4(2)(e) of the Kerala Tax on Luxuries Act. It upheld the taxation of amounts not declared as excluded and sustained the inclusion of yoga and meditation charges in the taxable turnover.
Regarding the miscellaneous income, the Tribunal remanded the matter to the assessing authority for reconsideration based on the claim that it originated from the sale of agricultural and waste products.
The Court, in its decision, stated that any grievances regarding the assessing authority’s order should be raised before the appellate authority. Dismissing the writ petition filed by the assessee, the court affirmed the tribunal’s decision.
Case Title: Bethsaida Hermitage & Tourism (P) Ltd Versus State Tax Officer