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May 28, 2015
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Hotels Worried about High Taxes Under GST
While the implementation of Goods & Service Tax (GST) will remove multiple taxation and bring ease of doing business, hoteliers and restaurateurs point out that the expected quantum of tax-between 17 and 27%-will be rather high for the industry .“The hospitality sector could be impacted after GST because it would appear that the total cost has gone up. Currently, while service tax at abated rate of 4.944% (5.6% after June 1) and VAT at 12.5% is levied on restaurant bills, after GST, you could see a much higher percentage of 24-25% (whatever the decided rate is) being charged on the bill,“ says Prashant Deshpande, senior director, Deloitte Touche Tohmatsu.
Source -
http://www.taxmann.com
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