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WARNING: Issues about Hotel Taxes in India

WARNING: Issues about Hotel Taxes in India

Old Feb 27, 13, 11:46 pm
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I find it odd that I am still charged the luxury tax on free nights booked with points. How are they calculating that? I would not pay rack rate so it's not very fair.
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Old Feb 28, 13, 3:20 am
  #17  
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AFAIK thats only the case in the U.T. Delhi?
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Old Feb 28, 13, 8:35 am
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I stayed at Doubletree, Hilton, and Shangri-La...all in Delhi. Only one that charged it was Shangri-La. Seems odd.
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Old Mar 2, 13, 12:25 pm
  #19  
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Originally Posted by SkyTeam777 View Post
I stayed at Doubletree, Hilton, and Shangri-La...all in Delhi. Only one that charged it was Shangri-La. Seems odd.
they are all within their rights to charge but quite a few seem to let it go....
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Old Mar 25, 13, 10:07 pm
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I'm assuming that if you have a pre-paid rate -- like through an online travel agency -- you are safe from any additional tax collection issue?
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Old Mar 27, 13, 6:03 am
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Wink

Originally Posted by iahphx View Post
I'm assuming that if you have a pre-paid rate -- like through an online travel agency -- you are safe from any additional tax collection issue?
OTA's add tax so yes no additional tax collection

however, i did have a case where i was offered an upgrade (Crowne Plaza) but had to pay differential taxes (difference between amt paid for booked room and amt tax applicable for the suite base rate)
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Old Mar 27, 13, 3:17 pm
  #22  
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Originally Posted by manuc View Post
OTA's add tax so yes no additional tax collection

however, i did have a case where i was offered an upgrade (Crowne Plaza) but had to pay differential taxes (difference between amt paid for booked room and amt tax applicable for the suite base rate)
OK, so if a chain hotel offers me an upgrade (a common occurence), I guess I need to ask if there are "tax consequences."
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Old Mar 27, 13, 11:28 pm
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Originally Posted by iahphx View Post
OK, so if a chain hotel offers me an upgrade (a common occurence), I guess I need to ask if there are "tax consequences."
i am sure they will tell you upfront
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Old Mar 25, 15, 12:44 pm
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Hyatt Regency New Delhi pulled this on me. It got ugly! I'm thinking of blogging this...

I was there at a special rate of approx $100. I used a Diamond Suite upgrade. The luxury and other taxes adds up to about 20%, so I was shocked when they presented me my bill for a 3 night stay - the taxes were about $80 per night. They said the rack rate of the suite was approximately $400 per night, ergo $80 tax per night. WHAT?

This was undisclosed to me at any point up till then. It was not on my confirmation or anywhere. They were pretty nasty when I complained, and insinuated that I was trying to get away with something.

Does anyone have the actual rule/law that authorizes taxation on rack rate? The only place I've heard this mentioned is from the front desk at the Hyatt Regency, and then in this thread. update: I just checked the website for the hotel and it does include some language to this effect, but the notice isnt particularly clear, and, also my room was booked by the Hyatt agent on the phone, and my confirmation did not include this disclosure.

Last edited by katstarr; Mar 25, 15 at 12:52 pm
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Old Mar 25, 15, 8:57 pm
  #25  
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Originally Posted by katstarr View Post
Does anyone have the actual rule/law that authorizes taxation on rack rate?
Originally Posted by yosithezet View Post
The HR Delhi provided me with a copy of the law. You can check out post #33 in this thread . It is a Delhi law so if you stay out of Delhi, in Gurgaon for instance, you won't have this issue. This law is also in effect in the state in which Bangalore is located. I discuss in the thread my experience when being upgraded to a two room suite.
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Old Apr 7, 15, 8:50 pm
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I think for India it is best to play it safe and get a detailed tax breakdown ahead of your stay so there aren't any surprises. Some chains seem to be better than others in giving you a clear breakdown of the total taxes ahead of time than others. Marriott seems pretty bad and I had a bad experience in Delhi at the JW Marriott after being "upgraded" to a club room and received a much higher tax than was quoted due to the higher rack rate of the room. This was particularly annoying for me as I have Marriott Gold status and would have got club access regardless of what room I was staying in. The "club" rooms were no different than the regular rooms, just on a different floor.
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Old Apr 21, 15, 6:48 am
  #27  
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Originally Posted by katstarr View Post
Hyatt Regency New Delhi pulled this on me. It got ugly! I'm thinking of blogging this...

I was there at a special rate of approx $100. I used a Diamond Suite upgrade. The luxury and other taxes adds up to about 20%, so I was shocked when they presented me my bill for a 3 night stay - the taxes were about $80 per night. They said the rack rate of the suite was approximately $400 per night, ergo $80 tax per night. WHAT?

This was undisclosed to me at any point up till then. It was not on my confirmation or anywhere. They were pretty nasty when I complained, and insinuated that I was trying to get away with something.

Does anyone have the actual rule/law that authorizes taxation on rack rate? The only place I've heard this mentioned is from the front desk at the Hyatt Regency, and then in this thread. update: I just checked the website for the hotel and it does include some language to this effect, but the notice isnt particularly clear, and, also my room was booked by the Hyatt agent on the phone, and my confirmation did not include this disclosure.
This has been going on there for the better part of a decade. This is also the hotel where they would leave info in the rooms about how Regency Club rooms got free transport to/from the airport and yet would deny providing it to upgraded (as diamond or using points) or even booked RC award stay guests.

There is nothing to stop the hotels from charging the Delhi "luxury" tax to Hyatt Gold Passport for award stays, as GoldPassport ordinarily pays the taxes on award nights.
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Old Apr 21, 15, 10:09 am
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Originally Posted by GUWonder View Post
This has been going on there for the better part of a decade. This is also the hotel where they would leave info in the rooms about how Regency Club rooms got free transport to/from the airport and yet would deny providing it to upgraded (as diamond or using points) or even booked RC award stay guests.

There is nothing to stop the hotels from charging the Delhi "luxury" tax to Hyatt Gold Passport for award stays, as GoldPassport ordinarily pays the taxes on award nights.
It was my first visit to India, so I had no idea of this "practice" nor how long it was going on. Furthermore, the fact that it has been going on for a decade does not make it wrong or right. The question is - does such a law exist and how is it treated by the Indian Tax officials. If it is not collected by the Indian Tax officials, then the hotels do not have the right to impose a phantom tax. I quoted the current Indian law in this blog post. I would like to see this issue clarified one way or another, and not with suppositions.

http://willrunformiles.boardingarea....fraud-or-legit
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Old Jun 16, 15, 10:13 am
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This is nothing to do with hotels, its specific to state laws - in Delhi, Tamil Nadu, Gujarat for sure (and maybe Karnataka)... Regardless of the rate you pay, one of the two applicable taxes is calculated on the rack rate paid on the room type occupied (lets say you book a standard room and are upgraded to a club room - someone, either you or the hotel, will pay the tax on the upgraded club room rate). These are logged by room number with the state tax authorities so there is very little the hotel can do.
I've had situations at HR Delhi where the taxes I've paid have been higher than the room rate when upgraded to a suite. Unfortunately this is another example of outdated Indian bureaucracy - and the hotels do not benefit from it. It makes changing rates and actually using dynamic pricing which is a great tool to maximize revenue and helps with last minute deals or advance purchase discounts - nearly impossible. I've had conversations with many a GM in affected cities and all have tried on various occasions to use the example of airlines and dynamic pricing to update this archaic law, but to no avail.
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Old Aug 24, 15, 2:58 am
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I just checked the Hyatt in Del and it shows insane amount of taxes and service charges on awards. I have never paid extra for awards before anywhere. Is this only in India?

I have about a seven days stay in Del.

How do I avoid paying these rip off extras? Which chains doesn't charge these?

Thank you

Last edited by Blueskyheaven; Aug 24, 15 at 3:11 am
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