One of our client is resort. In resort there is seperate bar Counter and Room Sales.. But there are collecting Service tax on above two counters not 12.36%. Is there any abatement on Service tax on bar sales and Room sales..
25 May 2013
see notification 26/2012 bundled service. (specially for situations similar to you) tax to be payable on 70% of total value, 30% abatement.
25 May 2013
W.e.f 01-07-2012, Service tax on Bar Sales shall be on 40% of Gross Value. (4.944 effectively). Service Tax on room sales shall be on 60% of Gross Value. (7.416 % effectively). In case of service of food in rooms it shall also be liable to service tax on 40% of Gross Value of fooding in the bill.
Kindly check the period of dispute. The abatement you have mentioned was existing prior to 2012.
CAclubindia
