I have some queries regarding recent amendment in Finance Act & notifications issued. Kindly resolve the same:
1) Services by way of renting of Hostel, Inn, Guest House etc: No Service tax will be charged if declared tariff of a unit of accomodation is below rupess one thousand per day or equivalent. This case will apply if we are running the hostel. If we have given the hostel to some other person in lieu of some fixed amount and he is charging the rent for individual units, whether the same will be treated under this head our it will be treated as a commercial unit & will be liable for service tax.
Whether service tax will be charged on the food suppiled in mess of the hostel if (a) mess charges are included in tariff & are below Rs. 1000/-, or (b) if the the tariff for food & room are charged separately.
2) Selling of Space or Time for advertisement: My Client is running a Mall, kindly tell me taxability of following:
(a) Space given for a Plazma Television. TV owner takes the advertisement from various parties. However gives us a fixed amount every month.
(b) Space given to an advertising agency who further provides it to local businesses.
(c) If Space is given to a canopy and it is from more than 6 months from now. Whether it will be treated as Rent or Advertisement.
3) Transmission or distribution of electricity:
(a) Electricity Bills are raised to Shops in mall as per the actual reading shown by electric meter installed. Whether Service tax liability arises on such reciepts.
(b) Whether Electricity generated by generator set will be liable for service tax. Since single bill is raised for the recovery of both the charges.
4) Man Power supply:
(a) We recover the charges for air conditioning also. Two types of charges are covered in this, one for actual consumption of airconditioners installed & second for labour which is required in operation. Whether service tax liability will arise in this case. and if yes, under which service it will be taxable.
Kindly resolve the above.
CAclubindia
