Service tax on hostels

This query is : Open

kalaimani (Querist)
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13 December 2012 Sir,

I am running ladies hostel. it is a partnership firm.
is service tax is applicable for hostels. if yes, please explain it

@VaibhavJ

@VaibhavJ (Expert)
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13 December 2012 hi

The hostel service is not taxable as it is not meant for temporary stay of less than 3 months. Further the mess facility in the hostel meant for the inmates i.e students of the school, if run by your school itself, then it is not taxable. But if some other agency/ contractor is given the contract for running the mess then it will be taxable and will be construed as Outdoor Caterer's service subject to exemption of SSI limit and then if taxable the eligible abatement can be claimed.

refer here for more details:
http://taxguru.in/service-tax/service-tax-renting-immovable-property-include-hotels-hostels-boarding-houses-residential-house-property.html

Thanks//Vaibhav
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kalaimani

kalaimani (Querist)
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03 April 2017 It is totally a private concern not connected with any colleges or schools. it also runs mess itself. Now please explain the provision of service tax

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