Originally Posted by
Keyser
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....
So what happens at hotel where the category of rooms spans the 18% and 28% tax brackets, e.g regular rooms at INR6K but deluxe rooms and suites above the INR7.5K trigger. Or meal inclusive rates push the rate above a trigger rate?
Do these hotels have different tax rates for different room categories?
I use the HI at Mumbai airport, and note it is now a blanket 28%, for all room types and all stay regimes. That covers the entry level rooms currently at 4K, and which I've (fortunately perhaps) never seen at 7.5+
I realise I'm possibly over-thinking this
But it seems such a ham-fisted scheme, where a tax on consumption is based on a theoretical sum the guest is ignorant of, rather than the amount paid.
Are the tax authorities nervous about hotels puling a fast one?