I have some queries regarding the announcement in 2009 budget. There it was informed that Five year tax holiday to new hotels of two, three and four star categories and convention centers start functioning at any time during the period beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2013 located in specified districts having a World Heritage Site.
My clients’ hotel is situated in one of the UNESCO world heritage site, which is in Ooty. I would like to clarify some mystifications relating to this budget announcement. I have listed my queries below; I would like to get explanations for these.
My queries are:
1) My client have been commenced the business in 30th August 2008. They are providing two star facilities, but the hotel is not accrediated in to star category. Due to some other reasons we couldn’t file IT returns for the FY 2008-2009 & 2009-2010.
If we are taking our firm into two star category accrediation whether we can get the tax exemption for FY 2008-2009 and 2009-2010 also.
2) The budget speaks tax holidays are for 5 years. Whether it is calculated from the set up of the hotel or it is considered from 2008 March?
3) If we are eligible for this tax exemption what are the pros and cons relayed on this.
(NOTE: Our Partnership firm established in 2007, but the operations started only from 30th August 2008)
CAclubindia
