Why Your ₹1,050 Hotel Booking Only Pays Out ₹808
Why Your ₹1,050 Booking Only Pays Out ₹808
A Deep Dive into OTA Commissions, GST, TCS, and TDS for Indian Hoteliers.
As a hotel owner in India, seeing a ₹1,050 booking notification feels good—until the settlement hits your bank account. If you've ever wondered why your payout seems "shrunken," it's because of the multi-layered deduction system involving the OTAs (MakeMyTrip and GoIbibo) and the Government.
The Reality Check: ₹1,050 Case Study
Let's break down a 20% commission booking where the guest pays a total of ₹1,050. Many owners forget that the "Gross" isn't just room rent—it includes the 5% GST on the room itself.
| Description | Amount |
|---|---|
| Total Guest Paid (Gross) | ₹1,050.00 |
| Taxable Room Value | ₹1,000.00 |
| GST on Room (5%) | ₹50.00 |
| OTA Commission (Base 20%) | - ₹200.00 |
| GST on Commission (18%) | - ₹36.00 |
| TCS (Section 52) @ 0.5% | - ₹5.00 |
| TDS (Section 194O) @ 0.1% | - ₹1.00 |
| Total Net Payout to Owner | ₹808.00 |
Where Did the ₹242 Go?
It's not just "commission." For a hotelier in India, the deductions fall into three main buckets:
- OTA Service Fee: The ₹200 base commission plus 18% GST (₹36) which is the cost of using their platform.
- Government Compliance (TCS/TDS): Under Section 52 and Section 194O, the OTA is legally required to withhold small percentages for the Income Tax and GST departments.
- The Good News: While TCS and TDS are deductions now, you can often claim these back as credits when filing your taxes!
Stop Guessing Your Profits!
Manual calculations lead to pricing errors. Use our specialized tool to see your real "In-Hand" earnings instantly.
Open OTA Calculator →Pro-Tip for Maximum Profit:
Always calculate your Operating Cost per Room against the Net Payout (₹808), not the Gross Value (₹1,050). If your laundry, electricity, and staff cost ₹600 per room, your actual profit is only ₹208 per night!