Originally Posted by
Keyser
not just delhi....there were a number of other states that charged it as well....
my firm represents the fhrai (federation of hotels & restaurants association of india)....for now the department of tourism has informed the fhrai that the tax bracket the room falls under will still be determined by the rack rate....
for example, lets supposed the rack rate for a particular room is inr 10k but the hotel is offering that room for inr 5k....the highest rate bracket of 28% will apply (because the rack rate is over inr 7.5k) but will only be charged on the room rate which is inr 5k....
Just to make sure that I understand (I'm a bit slow sometimes). I've got a booking coming up for which I'm paying with points, but am also paying some additional cash for an extra rollaway bed (pretty much the same scenario as for a cash and points booking). Since the rack rate on the room is above the 5k inr, would I then pay the 28% tax just on the amount I pay for the rollaway bed, and not on the entire rack rate?