Originally Posted by
IAN-UK
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?
yes they do....if the rack rate of a base room is under inr 5k then the lower tax bracket will apply....
Originally Posted by
IAN-UK
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+
that's perhaps because the rack rate is over inr 7.5k for all rooms....
Originally Posted by
IAN-UK
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?
lack of clarity is what makes this so frustrating....the government has implemented the scheme without thinking it through completely....