Input service in case of hotel

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2013 Dear All

A hotel is operating which is providing a number of service like:
Renting of Rooms
Supply of food and beverages
Mandap Keeper
Restaurant
Laundry
Telephone
Internet Wifi
Cab Rental
Hall Rental Charges
SPA
Renting of Immovable Property

The hotel is availing credit on iput services and setting off the same against the ST liability of the above service however the said input on services are for the whole business including certain non taxable service. How should the input be shared in case of Non Taxable and taxable services which include the abated services.

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
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11 February 2013 If assessee is providing both taxable and exempt services and if input services are common, Cenvat credit can either be taken on proportionate basis or service tax needs to be paid on exempted services.