Is Service Tax applicable on Laundary Services provided by a Hotel for its Guest? If applicable what percentage of abatement is applicable for the Hotel on Laundary Services?
Vivek Bahety (Service) (31 Points)
30 January 2016Is Service Tax applicable on Laundary Services provided by a Hotel for its Guest? If applicable what percentage of abatement is applicable for the Hotel on Laundary Services?
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 01 February 2016
There is a concept of bundle of services and in such cases the essential service rate is conisdered for all.
If hotel is charging less than 1000 per day as per its tariff then no ST on laundary. If provided as a part of the hotel then the rate applicable with abatement.
Vivek Bahety
(Service)
(31 Points)
Replied 06 February 2016
Dear Sir,
The Concept of Bundle of Services come if the Hotel doesnt charge seperately for other Ancillary services to the guest.
What shall be the implication In case the Hotel charges seperately for Laundury services to the Guest & the Room Tariff is more then Rs.1000/- ??
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