Airbnb

Athiti Devo Bhava. Turning this concept into reality, the Ministry of Tourism of India launched the scheme of Bed and Breakfast(b&b). Homestay Establishment scheme popularly known as Bed and Breakfast scheme is setting its feet in the tourism industry at a very fast pace. In this article, Anubhav Kumar Pandey deals with the intricacies of law involved in the registration of Bed and Breakfast in India. In addition to this, the article also talks about Airbnb and its hosting process.

Bed and Breakfast (B&B)

Stay overnight, have your breakfast in the morning, pay and leave. This is the concept of b&b. Ministry of Tourism in India is promoting the b&b home establishment scheme. Furthermore, one needs to register their b&b establishment as per the guidelines. Also, an establishment under b&b, have to abide by certain standards.

How to register for a Bed and Breakfast (b&b)  under the Ministry of Tourism scheme

Step1 Making of an application (Form A)

An application has to be made to the office of the regional director of the scheme. A list of registration address will be provided in the later part of the article.

Content of the Application

In addition to the introduction of the person making the application, the following listings should find its place in the application.

  1. Name of the establishment
  1. Category applied for – Silver/Gold
  1. Name of the owner(s) or person (s) authorized to manage the establishment
  1. Complete postal address of the establishment
  • Telephone number
  • E-mail
  • Mobile number of the promoter
  • Fax
  1. The distance of the establishment in km’s. from
  • Railway Station
  • City Centre
  • Nearest main shopping center
  • Nearest bus stand/scheduled city bus stop
  • Airport
  1. Details of the establishment
  • Whether building plan and its use approved from local authorities (copy to be enclosed)
  • Width of road on which establishment is located
  • Details of parking available in the establishment and or its vicinity
  • Plot area (sq. meters.)
  • Covered area (sq. meters)
  • Number of rooms in the establishment:
    • single bed (size of each room):___X_____
    • double-bed (size of each room)___X_____
  • Whether owned or leased, please enclose (copies of sale/lease deed)
  • Number of rooms (with attached bathrooms & WC) offered for letting out under the scheme
  • Details of common areas for the following facilities in sq. meters.
    •            Lobby/Lounge
    •            Dining space
  • Additional facilities available if any
    •            Eco-friendly facilities
    •            Facilities for differently abled persons
  • Details of Fire Fighting Equipment/hydrants etc. if any
  1. Type of food to be provided.
  2. Tariff for rooms
    • Single -room
    • Double-room
  1. Details of payment for registration
    • Amount (INR 5000 for Gold whereas INR 3000 for silver.)
    • Demand Draft Number and date
  1. Details of enclosures
    • Particulars of the family of the owner/person authorized residing with him in the establishment giving age, profession and relationship of each with the owner/ person.
    • Checklist of facilities available in the establishment
    • Note on the background of the owner.
  2. Photographs of the building including interiors showing types of facilities available, bathroom, living room, bedroom, parking, etc.

 All the documents should be self attested. The authorities will reply within 30 days.

Step 2 Where to apply for the scheme of b&b (Mailing address for the application)

  1. For states of Jammu & Kashmir, Himachal Pradesh, Punjab, Haryana, Uttranchal, NCT of Delhi, UT of Chandigarh and Uttar Pradesh except for Agra and Varanasi)

Regional Director (North), Indiatourism, 88 Janpath, New Delhi – 110001.Tel: 011-23320005/8.

2. For the States of Gujarat, Chattisgarh, UT of Daman & Diu, Dadra Nagar Haveli and Maharashtra except for Aurangabad

Regional Director (West), Indiatourism, 123 M. Karve Road, Mumbai -400020.Tel: 022-22033144.

3. For States of Tamil Nadu and UT oLakshadweepep

Regional Director (South), Indiatourism, 154 Anna Sallai, Chennai – 600002.      Tel: 044- 28460193

4. For States of West Bengal and Jharkhand

Regional Director (East), Indiatourism, “Embassy,” 4 Shakespeare Sarani, Kolkata -700071. Tel: 033 -22825813.

5. For States of Assam, Tripura, Mizoram, Nagaland, and Sikkim)

Regional Director (North- East), Indiatourism, Amravati Path, Christian Basti, G.S. Road, Guwahati -781007. Tel: 0361- 2341603

6. For the State of Karnataka

Director, Indiatourism, KFC Building, 48 Church Street, Bangalore – 560001, Karnataka. Tel: 080-25585417

7. For the State of Rajasthan

Director, Indiatourism, State Hotel, Khasa Kothi, Jaipur- 302001. Tel: 0141- 2372200

8. For the State of Bihar

Director, Indiatourism, Sudama Palace, Kankar Bagh Road, Patna- 800020, Bihar. Tel: 0612-2345776

9. For the State of Madhya Pradesh

Manager, Indiatourism, Near Western Group of Temples, Khajuraho -471606, Madhya Pradesh. Tel: 07686-242347.

10. For the State of Andhra Pradesh

Manager, Indiatourism, 3-60-140, IInd Floor, Netaji Bhawan, Liberty Road, Himayat Nagar, Hyderabad -500029, Andhra Pradesh. Tel: 040-23261360.

11. For the State of Kerala

Manager, Indiatourism, Willingdon Island, Kochi -682009, Kerala. Tel: 0484-2668352.

12. For the State of Goa

Manager, Indiatourism, Communidade Building, Church Square, Panaji -403001, Goa. Tel: 0832-2223412

**To know the mailing address for your state, click the following link.

Who can register under the b&b scheme

Only those properties which are registered under the proper law are eligible for registration under the b&b scheme. Also, properties which are on the lease can be used for the purpose of the b&b scheme.

Those who are convicted of a punishable offence and those who are undischarged insolvent cannot apply for the scheme.

  • The applicant should be himself/herself residing in the same residence with his/her family.
  • The applicant can rent out minimum one room and maximum six rooms. Each room can have maximum two beds for adults.
  • Once an applicant applies for classification he has to abide by the date set by the Regional Classification Committee and no deferment is allowed which will be valid for two years.
  • The rate of taxes on property, water, and electricity, will not be charged at commercial rates.

How to find out whether a B&B is registered or not

Registration of a B&b is necessary. How to check whether an establishment under the B&b scheme is registered or not? First thing first, ask the concerned person for a registration certificate. Every registered B&b under the Government of India scheme receives a registration certificate. (For instance, FORM D of Delhi b&b rules.)

Moreover, the government of India maintains a list of establishments registered under B&b scheme. We bring for you the complete revised list of the registered bed and breakfast establishment.

  • List of approved B&B establishment in the eastern region.
  • List of approved B7B establishment in the northern region.
  • List of approved B&B establishment in the western and central region.
  • To look for registered B&B in your region, please refer to the following link.

Grounds under which registration of a B&B establishment can be canceled

Every establishment registered under the B&b scheme are required to follow the guidelines laid by the government of India. Not following of these guidelines will lead to cancellation of license by the appropriate authority.

Let us take a look at the guidelines, non-fulfillment of which might result in the cancellation of the license under the B&b scheme.

Providing of false information in Form A

The application given in the above part of the article (Under the Heading Step) needs to be true. Take the instance where in the registration form the application is made for the silver category but instead the facilities provided belong to the golden class. This will lead to termination of the license.

Non-maintenance of visitor’s register

One of the grounds under which the license of an establishment under B&B scheme can get annulled is non-maintenance of visitor’s register.

Lapse of registration period

The time period for which a b&b is registered is two years. After the lapse of this time, the owner have to apply for registration once again. Non-compliance of this will lead to cancellation of the license.

Where the establishment is being used for unlawful purpose

This is a penal provision wherein the license of a B&B establishment can get canceled. Therefore, if a B&B establishment is being used for the purpose of prostitution or perhaps any other unlawful purpose, this will lead to the cancellation of the license of the establishment.

Hosting of B&B through Airbnb

What exactly is Airbnb?

Airbnb provides accommodation to travelers through hosting multiple B&b on its website. It does not own any room of its own but has created a platform for those who have can and wish to accommodate travelers at their place.

It registers hosts who provide accommodation to the travelers and helps the travelers find a place to stay in their desired city and location. It connects the host and the traveler and enables them to communicate and avail the service of a host by charging a service fee for the same.

What legal and regulatory issues should I consider before hosting on Airbnb

Get to know the tax levied on B&b scheme

Every state has their corresponding regulation on the taxation policy of B&B scheme. Therefore, it is important to check for the taxes which applies to the b&b scheme. Various taxes such as water, electricity, etc. are generally charged in every state.

Taxes may include things like hotel/transient occupancy tax, sales, and other turnover taxes such as Value Added Tax (VAT), or income tax.

Registration. “Will I land in trouble if I host on Airbnb without registration.”

Before answering this question, it is important to understand the reason why the government of India is promoting the B&b scheme. The sole purpose of the government of India is to boost the tourism by providing cheap rates accommodation to the travelers. Therefore, by looking at the number of visitors and to accommodate the travelers during the Commonwealth Games, the Ministry of Tourism launched the scheme.

Rule Number 4 of the guidelines on B&b establishment provides, the list of registered b&b will be duly publicized by the government. Also, the regional team of the tourism ministry will check on the issue of registration. Also, the intent of the government is to get constant updates on the progress on B&b scheme, and this will not be possible without registration of the establishment.

Therefore, if you host through B&B without registration, you might get into trouble if someone complaints. Also, the government might find the same during any routine check. Therefore, it is recommended to get your B&B registered.

Thinking of enjoying your stay at a B&B or planning to avail the scheme of B&B? Do not forget these guidelines. Do comment and share.

 

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