21 April 2009
Suppose i want to sell hotel room for Rs. 10000/-to customer, which i have recd from hotel @ 8000/-, then i want to provide a car for the same passenger for that destination Costing Rs. 25000/- which i have received from local agent @ Rs. 20000/- . In additon i want to charge Rs. 500/- as a service charges for entire arrangement. How much service tax and what rate i have to collect from customer ? Please guide me.
21 April 2009
There is no service tax on sale of hotel rooms. Regarding provision of car you have to charge service tax at prevailing rate(10% ST, 2% EC & 1% HSEC) on Rs 25000/- as you are providing Rent a Cab Service.
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