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Budget News

  • Hotel Association Of India Recommends Raising Depreciation Rate For Hotel Buildings From 10% to 35%
  • January 25,2022  14:33
  • Hotel Association of India (HAI), recently submitted its suggestions for the union budget of 2022-23 to the ministry of finance. The association wants a higher rate of depreciation. It also wants business losses to be allowed to be carried forward for up to 12 years instead of eight financial years and urges that hotels to be accorded an infrastructure industry status.The delegation has recommended a higher depreciation rate for hotel Buildings from 10% to 35%. The association said the capital expenditure in plant and machinery is allowed at 15% + 20% (additional depreciation). In comparison, hotels buildings, which comprise of 70% of the project cost only get deprecation at 10%. They have also asked to bring petroleum products and alcohol under the GST net from excise and have sought an increase of the SEIS rate of rewards.

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