The South Goa hotel and restaurant owners’ association (SGHROA) in a recently held meeting have decided to approach Chief Minister Manohar Parrikar with their grievances before the upcoming budget session of the assembly.
At the meeting, members of the middle and lower grade hoteliers unanimously agreed on a five-point agenda.
A memorandum conveying their position has already been sent to Parrikar. The association wants the VAT on LPG to be reduced to 5 per cent so that their burden will be reduced. "The current commercial cylinder price is nearly Rs 1,600 inclusive of VAT at Rs 12.5 per cent", said Peter Fernandes, SGHROA General Secretary, in a report by TOI. SGHROA President C P Jaggi pointed out that for composition tax, hotels should be classified on the basis of turnover. "Upto Rs 50 lakhs should be charged 3 per cent, similarly, for those establishments whose is between 50-80 lakhs should be charged 4 per cent and for above 80 lakhs should be charged 5 per cent composition tax," said Jaggi. He further added that the sale of cold drinks and ice-cream should be exempted from composition tax since the distributors have already collected VAT at 20 per cent. SGHROA protested against graded hotels offering free breakfast to room occupants. "On the free breakfast, the hotels do not pay any VAT at 12.5 per cent or composition at the rate of 5 per cent. Thereby, the state loses revenue," said Jaggi, pointing out that in the absence of such an incentive, guests would have to have breakfast at their restaurants which have to pay the taxes accordingly. The association further reminded Parrikar that he had promised to make the renewal of the fire brigade NOC mandatory once every three years instead of being forced to renew their NOC annually. Furthermore, they have asked the chief minister to regulate the business of roadside 'gaddas' as they alleged water, fuel and electricity were being used at domestic rates and without the necessary permissions from the state.
Source
A memorandum conveying their position has already been sent to Parrikar. The association wants the VAT on LPG to be reduced to 5 per cent so that their burden will be reduced. "The current commercial cylinder price is nearly Rs 1,600 inclusive of VAT at Rs 12.5 per cent", said Peter Fernandes, SGHROA General Secretary, in a report by TOI. SGHROA President C P Jaggi pointed out that for composition tax, hotels should be classified on the basis of turnover. "Upto Rs 50 lakhs should be charged 3 per cent, similarly, for those establishments whose is between 50-80 lakhs should be charged 4 per cent and for above 80 lakhs should be charged 5 per cent composition tax," said Jaggi. He further added that the sale of cold drinks and ice-cream should be exempted from composition tax since the distributors have already collected VAT at 20 per cent. SGHROA protested against graded hotels offering free breakfast to room occupants. "On the free breakfast, the hotels do not pay any VAT at 12.5 per cent or composition at the rate of 5 per cent. Thereby, the state loses revenue," said Jaggi, pointing out that in the absence of such an incentive, guests would have to have breakfast at their restaurants which have to pay the taxes accordingly. The association further reminded Parrikar that he had promised to make the renewal of the fire brigade NOC mandatory once every three years instead of being forced to renew their NOC annually. Furthermore, they have asked the chief minister to regulate the business of roadside 'gaddas' as they alleged water, fuel and electricity were being used at domestic rates and without the necessary permissions from the state.
Source