Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: VAT RATES :: VAT Audit :: articles on VAT and GST in India :: cpt :: ACCOUNTING STANDARD :: empanelment :: due date for vat payment
 
 
News Headlines »
 Looking for last-minute tax planning with Section 80C investments? Here's help
 Aadhaar mandatory for filing income tax return
 Will Aadhaar linkage solve India's income tax woes?
 GST roll out from July 1 will make goods cheaper: Jaitley
 Aadhaar To Be Mandatory For Filing Income Tax Return, PAN Application
 7 best tax-saving solutions which can help you save money
  No proposal to replace Income Tax with Banking Cash Transaction Tax
 How to Make Tax Saving Investments Less Taxing with an SIP in ELSS
 NRIs having only investment income may not file tax returns
 With income tax returns filing deadline near, here are 3 major things to do before March 31
 When public becomes tax gatherer

New hotels in NCR shed stars to avail tax holiday
October, 26th 2007

'Less is more' seems to be the latest mantra as a number of upcoming hotels in the three to four star categories in Delhi NCR are applying for lower star classification even though they may qualify for higher category in order to earn more tax sops.

Rajindra Kumar, president of Hotel & Restaurant Association of Northern India (HRANI), is of the opinion that if shedding stars means good service at par with higher category hotels, then there is nothing wrong in it. "It would work in favour of the hotel industry. But we have to pause and ponder if hotels maintain the star criteria they are supposed to. If so, they should be scrapped outright from classification," he said.

According to the 2006-07 annual budget, tax concessions have been allowed to promote infrastructure facilities. A five-year income tax holiday has been declared for two, three and four star hotels as well as convention centres with a seating capacity of not less than 3,000 in NCR Delhi and in the adjacent districts of Faridabad, Gurgaon, Ghaziabad and Noida, under the condition that they be operational between April 1, 2007 and March 31, 2010.

A prominent hotel in the Gurgaon region to be operational next year plans to position itself as a four-star business hotel. Its general manager, under conditions of anonymity, revealed that the company consciously went for the classification. "We are going to provide five-star facilities with pools, conferencing facilities and fine dine restaurants with the four-star rating to qualify for the five-year income tax holiday bracket," he said.

However, Kumar added that it is vital to identify whether hotels could maintain high standards over a period of time. "Hotels tend to raise room tariffs when faced with a cost crunch," he said. The duration of return on investments in hospitality is always a debate and therefore taxes become a crucial consideration. According to Mansoor Adil, executive vice president at Sarovar Hotels & Resorts, the department of tourism is considering issues where hotels giving superior services might not be able to avail for lesser classification.

M N Javed, deputy director general (Hotels & Restaurants), ministry of tourism, who heads the hotel classification committee, reacted to such practices by saying, "It does not make economic sense for the hotel. It could be the company policy but overall, if it works out then it is certainly going to benefit the industry." He added that this practice was not illegal. Perhaps these hotels will upgrade facilities after the designated period to make themselves a five-star property.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions