The Hindu : Andhra Pradesh / Hyderabad News : Caution against hotels charging more VAT

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Thursday, Jul 09, 2009
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Caution against hotels charging more VAT

Consumers urged to cite instances of hotels collecting 7.5 per cent VAT
on value of bills

HYDERABAD: Commercial Taxes Commissioner Ranjeev R. Acharya on Wednesday urged consumers to bring to the notice of the nearest department authority any instance of hotels collecting 7.5 per cent VAT on the value of bills.

In a press release, he said three star hotels with boarding and lodging facilities should collect tax at 12.5 per cent on the value charged in the bills excluding the value of liquor and services. Such hotels are to pay tax after adjusting the input tax credit.

Fixed tax

Mr. Acharya stated that hotels rated below three star category should collect tax at four per cent on the value of the bill excluding liquor and services. They should pay tax at four per cent without availing themselves of any input tax credit.

The release stated that restaurants, messes, tea and coffee shops, sweet shops, bakeries, ice cream parlours, clubs and other eating places whose turnover in the previous 12 months is more than Rs.1.5 crore should collect tax at 12.5 per cent from customers. They are to pay tax after availing themselves of the input tax credit.

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Andhra Pradesh