In India, there is no specific National Association for Short Term Rental (STR) owners. However, there are several organizations that provide similar support, such as the Federation of Hotel & Restaurant Associations of India (FHRAI) and the Association of Service Apartments Providers (ASAP). They work to represent and assist various hospitality and rental business owners, including those managing short term rentals. However, for specific issues related to STRs, many owners often turn to international organizations like VRMA (Vacation Rental Management Association). Also, they rely on support from popular platforms such as Airbnb and Booking.com for assistance and guidance on STR operations.
In India, the short-term rental market is primarily regulated by state and local laws rather than national ones. However, several general guidelines exist, which homeowners must follow. These generally fall under the Shop and Establishment Act of the respective states. Also, it's the homeowner's responsibility to ensure their rental adheres to local zoning and housing laws and doesn't violate their terms of their mortgage, homeowners association regulations, or lease agreement.
Any income generated from rental property should be declared under the 'Income from House Property' for income tax purposes. Property owners are also required to pay Goods Services Tax (GST) on rental income if the annual aggregate turnover exceeds the tax threshold set by the government. For parties involved in short-term rentals, due diligence is also required to ensure that KYC norms are met to minimize the chance of any illegal activities.
Additionally, some states in India have started to develop policies specifically regarding short-term rentals and platforms like Airbnb. For example, Maharashtra state government has guidelines regulating Bed & Breakfast establishments.
It's also crucial to understand that different rules apply to properties designated as 'commercial' and those designated as 'residential'. This is a complex field with a lot of variables, so it's recommended to seek professional advice or consult a lawyer before conducting short-term rentals in India.
Yes, there is a tax applicable to short-term rentals in India. It's called the Goods and Services Tax (GST). As per the GST law, short-term rentals are considered a service. Therefore, they're subject to a tax rate of 18% if the tariff is more than INR 1000 per day. However, if the annual aggregate turnover is less than 20 lakh INR in a financial year, you are not required to collect GST. Additionally, the Indian Income Tax Act considers income from short term rentals as income from other sources and it is taxable as per the individual's tax slab. Please consult with a tax expert to ensure you are managing your taxes effectively.
In India, there is no specific National Association for Short Term Rental (STR) owners. However, there are several organizations that provide similar support, such as the Federation of Hotel & Restaurant Associations of India (FHRAI) and the Association of Service Apartments Providers (ASAP). They work to represent and assist various hospitality and rental business owners, including those managing short term rentals. However, for specific issues related to STRs, many owners often turn to international organizations like VRMA (Vacation Rental Management Association). Also, they rely on support from popular platforms such as Airbnb and Booking.com for assistance and guidance on STR operations.
Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.
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