subject: Increasing Rates Of Services In The Hospitality Sector [print this page] By the end of this coming festive season, winter vacations are up. You would have planned your winter vacations for this year. I bet you along with your family are going enjoy this years holiday. But here is slightly a bad news for the holiday goers. The Government has decided to increase the service tax on multistoried and fine dine restaurants.
Governments above said step can loosen your pocket when youll be on your vacation. As the service tax increases, the cost of various services to be paid by you will also be increased. The cost of each service you are offered will be at increased rates.
The rates of vacation rentals that you pay for the room you booked for your vacation will also be charged more than what you were told. The actual vacation rentals will be the same but you will be charged with the additional service tax.
Apart from room rentals, the price of the food will also go up. The service tax for the whole hospitality sector was increased in this years budget.
In order to check the current scenario, I contacted a restaurant owner Mr. Shankar Sharma at one of the most desired touring destinations, Shimla. He said, Service tax is due to those who uses or consumes the service. So we will charge the additional service tax from our Guest. He also added, We havent increased the rates of our Vacation Rental in past 3 years but customers are being paying more every year than what they paid last year just because of the Service Tax.
Yes, I agree that the service tax in India is being increased by the government every year and this is why you are paying more for many services and products.
I also tried to speak to the General Manager of a 3 Star Hotel regarding the increased service charges in their hotel. He said, as the rates of all the things and services involved in running a big hotel have been increased, we also have increased the rates of our vacation rentals, meals and drinks. Taking this step was necessary to meet our breakeven point.
Yes, I agree to this also as rate of almost all the goods are doubled or tripled in past few years and maintaining the same rate of their products and quality services like before is not possible for any industry or business.
Mr Amit Batra, writer of the Business Column in a leading Hindi Daily also says, It is almost impossible to for a business owner to maintain the same standard of quality and service at the rates of five years back. Those who have kept the same rate for their products, have lower the standard of their services, he further added.
