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Originally Posted by Keyser
(Post 28529985)
....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......
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I was in Mumbai last 2 weeks. The difference in restaurants in quite significant. 18% GST + 10% service charge is now the norm. Even small fast food restaurants went from 5%(Plus minor cess) to 18%. A small iced tea at starbucks for Rs 212/- ($3.29) - thats expensive for India! My breakfast on June 30 cost Rs 64/- , on July 1 same thing was 71/-that's quite a big difference in % terms. And yes Maharashta govt is already adding some other taxes on cinema(28%GST++)
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Originally Posted by GUWonder
(Post 28482206)
Not applicable (yet) in Jammu, Kashmir & Ladakh. Glad to see at least one state legislature trying to tell the federal/union government to go pound sand, even as I anticipate that they will capitulate eventually too.
I anticipate some creativity from businesses. Restaurants that split into a food selling business and into a nearby seating business. Hotels that lower their rates but then charge for compulsory "incidentals" like getting electricity in the room, sheets, maid service, and so on. |
Originally Posted by Acid
(Post 28543349)
My breakfast on June 30 cost Rs 64/- , on July 1 same thing was 71/-that's quite a big difference in % terms.
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Originally Posted by Keyser
(Post 28529985)
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.... |
Originally Posted by whimsey21
(Post 28606037)
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?
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Originally Posted by Keyser
(Post 28606434)
you will pay the tax only on the rate being charged (in this instance just the charge for the rollaway bed) but it would be charged at 28% if the rack rate of the room is over inr 7.5k....
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Originally Posted by Keyser
(Post 28529985)
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.... 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 :D 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? |
Originally Posted by IAN-UK
(Post 28662848)
Do these hotels have different tax rates for different room categories? |
Originally Posted by IAN-UK
(Post 28662848)
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?
Originally Posted by IAN-UK
(Post 28662848)
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+
Originally Posted by IAN-UK
(Post 28662848)
I realise I'm possibly over-thinking this :D 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? |
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