Abatment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2016 Hi Experts,
Can you please tell me what rate applicable as service tax for hall hiring without letting furniture's if such hall is categorised under mandap keeper.Just tell me servicetax rate with appropriate example and notification

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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13 February 2016 “Mandap Keeper” means a person who allows temporary occupation of a Mandap for consideration for organizing, any official, social or business function.
(Section 65(39) of Finance Act, 1994 as amended)

The value of the taxable service shall be the gross amount charged by the mandap keeper for such service rendered by him. (Section 67 of Finance Act, 1994 as amended)

The value of taxable service is a gross amount charged by the Mandap Keeper from the client for use of the Mandap including the facilities provided to the client in relation to such use and also the charges for catering, if any.

The Service Tax would fall not only on the hire charges for the mandap but also charges for electricity, whether on actual basis or otherwise, charged to the customer. The tax is to be collected on the whole amount even if separate bills are issued one for the rental and the other for electricity charges. The mandap keeper may also bill the client for other services rendered by him such as charges for providing furniture, fixtures, lighting fittings, vessels, crockery, cutlery, etc. All these charges are includible in the value of taxable service for the levy of Service Tax.

From the above provisions from Notification No:19 / 97 - ST dated 26th June 1997, it is clear that there is no abatement available for Mandap Keeper Services. Any consideration received is subject to Service Tax at the current rates i.e. Service Tax 14% and Swatch Bharat Cess 0.5%.