How much tax is charged on hotels?

When I am quoted a price, plus tax, at a hotel how much tax should I expect to pay? Is there a standard amount?

Cheers!

Rarely, I think it depends from state to state.. I'd budget on 5-15%

Luxury tax(where applicable) is normally 10% of the regular room tariff. Note that even if a room is offered to you at a discounted price, the LT will be calculated on the original tariff.

It would be intersting to see if you were still charged this if things were 'less' than luxurious ! A bit like being added a 'discretionary' service charge on a food bill in a restaurant.. Could get interesting

As far as I'm aware luxury tax only applies to hotels with 5 or more rooms which might be handy to know if you want to avoid paying it altogether

I think its not just the no. of rooms which is the criterion for applying luxury tax, its also the room tariff. LT is applicable above a certain tariff.

You are right ! I've experienced this in a couple of hotels, where the charging of "Luxury" Tax defied all logic !

A hotel owner tried to charge us luxury tax in a budget hotel in Kullu town once.

For most of the time we had stayed there the electricity was off (not his fault) so we had no running water, hot or cold.

I laughed hysterically and he quickly scrubbed out the charge.

I think luxury tax is applied above a certain price limit but can vary from state to state. Anyone in the business who can enlighten us? Lily perhaps?

Yeah I think that's right Alan it's above a certain price bracket and the threshold is different state to state!

Rajasthan is 8%,,,,,,,,,,,,,,

I think Delhi is 12.5 %

Just checked - it has been reduced to 10% and it's levied on rooms that cost over 500 rupees.

The 5 star Hotel Taj View in Agra charges 5% luxury tax, 20% sales tax, 10% expenditure tax, and other taxes as per rules!

Ask for an all inclusive price.

In Rajasthan Luxury tax is applicable when the room rate exceeds INR 1000/- per night. Presently it is 8% but for May and June it is 4%.

This figure changes with the announcement of the annual state budget which is in force for one year from April 1 to March 31.

in Delhi it is 12.5% for rooms above 500/-. Below 500/-, no luxury tax. It is not 10% as earlier suggested.

yes.
luxury tax is applicable after room tariff 1000 and food tax is 8%.

thanks

Kailash