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 :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: articles on VAT and GST in India :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: TDS :: list of goods taxed at 4% :: VAT Audit :: ACCOUNTING STANDARD
 
 
Service Tax »
 Interpretation Of Central Goods And Services Tax (Cgst) Act (Part-7)(Meaning Of Important Terms)
 GST Council may clarify on tax rate for solar modules at 3 June meeting
 Rules not ready, key e-way bill for GST may be delayed, says top official
 How Goods and Service tax will benefit the nation
 GST implementation may increase expense ratio of fund houses
 GST structure: an unfortunate compromise
 Extension Of Provisional Attachment Under Service Tax Provisins
 How favourable will GST be for Karnataka?
 GST rate impact: Here’s how the new tax can carry a greater punch
 E-way Bill - movement of goods under GST
 How the GST rates will affect your money

Service tax hike an additional burden: Indian hospitality and travel industry
June, 19th 2015

Now consumers will pay more for various services starting June 1, 2015. In the Union Budget, finance minister Arun Jaitley had proposed to increase the service tax from 12.36 per cent to 14 per cent. This service tax hike, applicable from June 1 onwards, hasn’t been well received by the Indian hospitality and travel industry. According to them, the hike will adversely impact the end consumers’ frequency of dining out, the number of inbound tourists to India, among others. Speaking on this, Bharat Malkani, president, Hotel and Restaurant Association (Western India) stated, “Over the years dining out has reduced drastically and an additional tax burden will make it worse.

The whole policy will force the industry to gravitate into the unorganised sector. Hotels will increase their room rates and the volume of tourism will also get impacted. We had previously requested the government to exempt the hospitality sector from paying service tax as it amounts to multiple taxation and we will continue to do so.” Giving another viewpoint, Kamlesh Barot, past president, Federation of Hotel & Restaurant Associations of India (FHRAI) and Hotel & Restaurant Association (Western India) opined, “We had been protesting against the service tax issue from the beginning. It is unconstitutional to charge twice on one commodity by the state and centre, that is the point of contention and not the 1.64 percent hike in the service tax.”

As for the travel industry, the hike will have an adverse impact on inbound tourism to India considering that the country is an expensive destination. “This isn’t a welcome step. The travel industry is already burdened with multiple taxes and steps should have been taken to smoothen the process. The government shouldn’t have hiked the service tax before the proposed implementation of the Goods and Services Tax (GST) Bill from April 1 next year,” pointed out Subhash Verma, immediate past president, Association of Domestic Tour Operators of India (ADTOI).

Reiterating the same, Sampat Damani, chairman, Western Region – Travel Agents Association of India (TAAI) opined, “Travel and related activities will become expensive. Though corporate travel will not be impacted, the hike will impact leisure and FIT travellers. However, we hope the government has good intention since the GST is expected to be implemented next year.”

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

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