The Traveller Reviews Awards 2023 are here.

It’s time to celebrate our winners! Use your property ID to find out if you’ve won and download your award kit.

Find out more

Tax legislation in India: FAQs

Updated 2 months ago | 5 min read time
Save

Partners in India are charged a Goods & Services Tax, as well as a withholding tax. Your obligations depend on your room rates and your PAN number. Here are our answers to some of the most important questions partners like you have asked us about taxes in India.


What’s in this article:

  1. Understanding the Goods & Services Tax (GST)
  2. Understanding the withholding tax
  3. Understanding Taxes Deducted at Source (TDS)

 

  • If you’re a GST-registered partner, you must charge the GST on your room rates and remit this tax amount to the Indian Government directly.

  • If you aren’t registered for the GST, we have to collect and remit the GST on room rates to the Indian Tax Authority on your behalf.

  • If you’re not a GST-registered partner, you’ll get a Goods & Services Tax payment overview next to the regular commission invoice for our services.

    The document will specify the total amount of the room rates sold on our platform and the applicable GST rates for these room rates. Below are the GST rates per room rate category: 

    • Daily room rates of ₹0 - ₹7,500: 12% GST rate
    • Daily room rates above ₹7,500: 18% GST rate

    Please note these rates are subject to change based on government rules.

  • You are expected to pay the GST amount to Booking.com monthly at the same time that we are remitting the monthly payment to the government on your behalf.

  • Since 1 October 2020, due to new legislation, we have to withhold tax for all properties in India.

  • We are required to withhold 1% of the net Total Transaction Value (TTV) for properties that have a valid Permanent Account Number (PAN) and 5% for properties that don’t have a PAN.

    However, the percentage charged will also change based on whether you have filed your Income Tax Returns (ITR) and if you linked your PAN to your Aadhaar number.

  • If you didn’t file your ITR, the Indian Tax Authority requires us to charge you a 5% withholding tax.

  • If your PAN number’s 4th character is either a P or an H, it should be linked to your Aadhaar number. If you didn't link both numbers, the Indian Tax Authority requires us to charge you a 5% withholding tax.

    Please refer to Section 194-O of the Income Tax Act 1961. For more information, we advise you to speak to your tax agent.

  • Please check with your tax agent/accountants if you had filed your Income Tax Returns for prior years and whether your PAN is invalid. If your PAN number’s 4th character is either a P or an H, it should be linked with your Aadhaar number.

  • Please consult your tax advisor for this question. However, please note that any TDS deductions will be considered short payments as per our agreed contract terms. You may refer to our signed General Delivery Terms (GDT).

  • While we aren’t currency able to retrieve the TDS due to technical difficulties, you can view your TDS credit by logging into the TRACES portal with your user ID and password and downloading the Form 26AS. It will display the TDS amounts which have been deducted and deposited by us. It will also provide all the relevant details and information required to claim a credit of such TDS amounts in your income tax return.

  • You can update your tax details directly on the extranet:

    • Click the Finance tab 
    • Click Goods and Services Tax
  • If you have any questions about VAT matters, we recommend that you contact your tax advisor or accountant.

Is this article helpful?