Wednesday, September 5, 2007

Bed & breakfast scheme


New Delhi, Sept 03

The Union Ministry of Tourism has launched a Scheme to classify fully operational rooms of Home Stay Facilities as “Incredible India Bed & Breakfast (B&B) Establishment”. The basic idea is to provide a clean and affordable place for foreigners and domestic tourists alike, including an opportunity for foreign tourists to stay with an Indian family to experience Indian customs and traditions and relish authentic Indian cuisine.

81 Establishments have been registered in this Scheme in Delhi, out of which 23 are in the Gold category and 58 are in the Silver category. The total number of rooms registered under the Scheme is 221. The number of establishments registered in the National Capital Region (NCR) is 94.

In view of the positive response received by this Scheme and the potential it has to create additional accommodation, the Govt. of NCT of Delhi has passed the ‘National Capital Territory of Delhi (Incredible India) Bed & Breakfast Establishment (Registration and Regulation) Ordinance, 2007”. This Ordinance extends to the whole of National Capital Territory of Delhi and exempts Bed & Breakfast Establishments from levy of Luxury Tax and Value Added Tax. Earlier the owners of these establishments had to pay 12.5% Luxury Tax. Moreover, it ensures that the establishment shall not be treated as commercial one and shall only be liable to pay –

(a) Power and water tariff as applicable to domestic or residential use; and

(b) Property tax as applicable to residential tenanted premises with respect to the portion let out to the guests, restricted to the period of occupancy thereof, fully or partly as the case maybe.